Legal & General Investment Management (LGIM), the insurance arm of Legal & General, has announced that it has cut the value of its £2.3 billion U.K. property fund by a further 10 percent. The company had earlier made a 5 percent valuation cut as a cautious move in the current market environment.
"At this time it is still difficult to predict the exact impact of the vote to leave and subsequent market events on commercial property values. In the interests of treating customers fairly, we have made a further fair value adjustment of -10 percent, so that the underlying property assets of the U.K. Property Fund (PAIF) and the U.K. Property Feeder Fund are now subject to a total fair value adjustment of -15 percent, a spokesperson at LGIM told CNBC via email.
The new prices were applied from the valuation point on 6 July and the adjustment has been made considering the broader market response and other economic metrics.
"We will continue to monitor market events closely, using all available sources and our experience of the property market," the spokesperson said.