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Japanese nuclear fears freeze German real estate fund

Union Investment says it has stopped all buying and selling of units in an open-ended fund as it was 'not possible' any more to value its holdings in Tokyo

Fears of a nuclear crisis in Japan have spilled into the commercial property sector with a large German institution suspending a €2.2bn fund as it said its holdings in Tokyo were now impossible to value.

Union Investment, one of the largest German fund managers with €177bn under management, said that the nuclear fallout in Japan has made valuation of its properties too difficult as its surveyors had never had to deal with the threat of nuclear contamination before.

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