Norwich Property Trust, the UK’s biggest commercial property fund for retail investors, has begun a disposal of properties to pay off investors withdrawing from the fund. Sunday Telegraph

Norwich has contacted prospective buyers about potential sales to boost the liquidity levels of the £4.1bn fund.

Since the beginning of August the proportion of the fund held in cash and shares used to pay for investor redemptions, has dropped from 18.4% to 15%, the bottom of the fund’s target levels. Morley, the fund’s manager, has admitted that it was experiencing negative cashflows.

A source said: ‘The move is almost inevitable. For so long these funds were taking in huge amounts of cash and buying huge amounts of property. Now the tide has turned and they need money to pay off investors who want their money back.’