23/10/2012
Some real estate funds in liquidation are late with redemptions
Berlin-based agency Scope has found that managers of German open-ended real estate funds in the process of liquidation are generally not in a hurry to pay out redemptions to their shareholders, with the possible exception of KanAm: the decision to liquidate the KanAm US grundinvest fund was announced in September 2010, and since then, the entire portfolio has been sold off. Meanwhile, KanAm has already paid out EUR463m to shareholders, equivalent to 84.5% of assets. However, Scope notes, the DEGI Europa and Morgan Stanley P2 Value funds have so far paid out only EUR421m and EUR300m, respectively, which represents only one third of their assets, while two of the three years of the redemption period have already expired.For the SEB ImmoInvest, which had about EUR6bn in assets, redemptions paid since the announcement of the liquidation in May 2012 have been equivalent to only 20% (EUR1.2bn).Scope reports that for several funds, the redemption quotient stands at 0 to 10%. The TMW Immobilien Weltfonds and Axa Immoselect funds, for example, have not begun to pay out their shareholders, since they need to begin by paying off lenders who provided leverage for their acquisitions. In addition, they have not sold enough properties to begin to pay back subscribers.
