GERMANY - Open-ended real estate funds in Germany have suffered another bout of redemption freezes following writedowns in property valuations.
Aberdeen Property Investors announced on 8 February that the real estate assets of Degi Global Business, a global open-ended fund for institutional investors and high net-worth private investors, had fallen in value by 21.6%.
On February 12, Aberdeen then announced it had suspended all redemptions for Degi International, a global open-ended fund for retail investors, because of the "continuing difficult market situation".
The retail fund is closed to redemptions for nine months until 16 November 2010, during which time the fund management team will work "on the creation of additional liquidity", and look to protect the interests of "long-term oriented investors" remaining in the fund.
No redemption freezes have been announced for the institutional fund, Degi Global Business.
Elsewhere, Pramerica Real Estate Investors said it had halted redemptions from its TMW Immobilien Weltfonds, which includes separate share classes for both retail and institutional investors.
TMW Immobilien, which only re-opened at the end of 2009 following a previous redemption freeze, will remain closed for an initial period of three months.