German real estate funds are liquidating timesonline dating
Surprisingly, some GOEFs with later liquidation dates have been active and early sellers in order to take advantage of strong current investors’ interest and to maximise sales prices.Magali Marton, head of CEMEA research at DTZ, says: “Total 2013 sales were EUR2.7bn, down only slightly from 2012.2013 volumes in these latter three sub-regions combined were of EUR1.3bn, up from only EUR0.1bn in 2012.Compared to 2012, sales in 2013 have shifted from an average seven per cent premium to a significant discount of 13 per cent across Europe.” Going forward, GOEFs in liquidation still hold a portfolio of 4.7 million sq m of European properties, mainly concentrated in Germany (32 per cent) and Benelux (19 per cent) whilst Southern Europe accounts for a further 15 per cent.So far, I invested in two German real estate funds in liquidation – TMW Weltfonds and Axa Immoselect. My introductory post about this investment topic can be found here.Together with CS Euroreal and SEB Immoinvest, Kanam Grundinvest is one of the “big three” German real estate funds currently in liquidation.Unfortunately, this change was too late to prevent large investor redemptions. The EUR6bn in net assets under management in the CS Euroreal fund brings the total value of GOEREFs in liquidation to around EUR23bn, compared with a total industry size of around EUR86bn in March 2012.The GOEREFs that remain open to redemption and subscription activity in May 2012 typically have captive distribution networks - for example a retail banking network - while those funds in liquidation typically do not.
Historically, they offered daily liquidity despite being invested in property assets, whose disposal to meet redemptions might take some time.This fund structure has proved difficult to sustain in light of market conditions and investor redemption requests.Regulatory efforts have sought to address the liquidity mismatch in these funds, providing for annual redemption only.Earlier this week, British group Aberdeen Asset Management’s ADN.L German real estate Degi Europa fund, which announced its liquidation in Friday, paid out investors around 20 percent of the fund’s total value. Three including those run by Aberdeen Immobilien, Kan Am Group and Morgan Stanley (MS.