Geared Property fund - cut losses?

[rogeroleary]

I moved about €100k from a previous employers pension fund into a geared property fund about 2 years ago - big mistake in hindsight. The most recent update states that the fund purchased 3 commercial properties in the UK yielding an average 4.5%. However the performance is crap for a load of reasons:
- a fall of 14.8% in value since the purchase of the properties (which I find amazing in such a short time )
- the impact of gearing (which I suppose is fair enough)
- the exchange rate with sterling (fair enough)
- a provision made of 1.5% for cost of eventual disposal (fair enough too I suppose)
- all costs of acquisition have been fully amortised
- all interest has been paid on the funds borrowings to date

All of the above have combined to bring about a 53% decrease in the value of the fund.

I suppose the issue now is do I take the hit and withdraw and if so are even more costs associated with that. The projected investment period was 5-7 years so it potentiall has another 5 years to run.

Any suggestions?

Roger

 

[mercman]

Surely, there is no need at this stage or any point in panicking. All investors that entered the property market whether in funds. syndicates or on their own are facing the same situation. There is a slump in the market but there is no evidence that it will last. Time and patience are the order of the day. What other asset class could you invest in now apart from equities ?? My own view would be that property in the UK will bounce back and you will at its worst receive near the amount invested.

 

[rogeroleary]

Surely, there is no need at this stage or any point in panicking.

Actually I didn't think that I was panicking - merely seeking views on what others might suggest. Given the gearing factor however it would appear possible that the entire investment could be wiped out hence the question about possible cutting the losses.....

Roger