Aberdeen to liquidate Degi German Business fund

Fund manager Aberdeen Immobilien Kapitalanlagegesellschaft has announced plans to liquidate its EUR 219 mln Degi German Business open-ended property fund by 2015.

In a statement on Wednesday, Aberdeen said it intends to sell off all the funds' assets in the next three years in order to terminate the management of the fund with effect from 20 November 2015. 'The regular liquidation will ensure that all investors receive equal treatment, irrespective of the level of their investment,' it added.

The fund, which was launched in December 2006, suffered a liquidity squeeze as a result of the global financial crisis and was forced to halt redemptions in November 2010. Since then, Aberdeen has been working with investors to identify solutions, the company said, but ultimately regular liquidation emerged as the best option for protecting their interests.

Degi German Business currently holds 17 properties with a value of EUR 219 mln and a liquidity ratio of 8%. Aberdeen said it has signed sales contracts for two further properties with an aggregate market value of about EUR 49 mln. In addition, the marketing process for further real estate holdings has already been initiated.

The decision follows similar moves to liquidate Degi International and Degi Global Business in 2011.