Impact of Japan earthquake puts property fund in limbo
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Tokyo's bright lights go dark: Many buildings in Tokyo have turned off lights as part of electricity saving efforts to avoid widespread power outages. Photo: AP
Commercial property has become the latest industry to be struck by concerns about a nuclear accident in Japan after a major German fund banned investors from withdrawing money because it cannot value its assets in Tokyo.
Union Investment Real Estate, which has about €19bn (£16.6bn) of assets under management, said it was closing its open-end Unilmmo: Global fund because the threat of nuclear contamination had created "exceptional circumstances".
The fund manages €2.2bn of assets and has seven properties worth €400m in Tokyo, including offices, apartments and retail properties.
The suspension highlights the unprecedented situation that businesses in Japan find themselves. None of Union Investment's properties were damaged by the earthquake.
In a statement, it said: "With the impact of the nuclear incidents in Japan still unclear, especially at the Fukushima plant, and the economic consequences impossible to predict at present, Union Investment Real Estate contacted its external experts to request a revaluation of its properties in Tokyo.
