The financial services authority AFM is warning investors to be careful when putting money into non-listed property funds because a number are currently under investigation for providing misleading information.

Around 25% of some 80 funds in its data bank are ‘dubious’, AFM executive Rene Maatman says in Tuesday’s Financieele Dagblad.
At least eight of them are currently under threat of a fine or other sanction, Maatman said. He would not go into further details because the investigations are not yet complete, ‘but some names will be known in a couple of months’.
Both big and small companies are being looked into. ‘Investors cannot simply have more confidence in the big names,’ Maatman said.
Vacancy rates
The property sector is currently dealing with rising vacancy rates and reduced rents, coupled with refinancing problems. This means many funds are in trouble and investors are facing higher risks.
This need not be a problem in itself, but investors must make sure they know what is being done with their money, Maatman said.