Bank of England Governor Mark Carney could not have been any more explicit: Britain faces its biggest domestic risk if it decides to leave the European Union. With the referendum vote now set for June 23rd, the risks associated with Brexit are beginning to register with property investors from both near and far. Deal volumes in the first quarter of the year have slowed and raising capital for near term deployment is increasingly difficult. CBRE Global Investors takes the risks surrounding Brexit seriously and in recent weeks we have been dedicating significant effort asking some very important “what if” questions.
In this paper, we provide a backdrop to the current debate, present our analysis of the economic implications of a Brexit, make the link to property performance and consider how to position UK portfolios in the months preceding the vote as well as after a possible exit.
Source : CBRE Global Investors