German open-ended fund manager KanAm Grund KAG announced on Wednesday it will liquidate its EUR 6 bn frozen Grundinvest fund, saying the move was 'in the best interest of its investors'.
German open-ended fund manager KanAm Grund KAG announced on Wednesday it will liquidate its EUR 6 bn frozen Grundinvest fund, saying the move was 'in the best interest of its investors'.
The announcement comes after KanAm was not able to secure sufficient cash for the forced re-opening of the fund in May this year.
Frankfurt-based KanAam, which suspended redemptions from its Grundinvest fund in May 2010, said the fund will be liquidated and money returned by the end of 2016, in one of the largest disposal programmes carried out by a German open-ended fund since the onset of the credit crisis.
About EUR 200 mln will be paid back in the weeks ahead, it added.
'Uncertainty on the part of investors has grown significantly in recent weeks due to the euro crisis and the public debate about the future of open-ended property funds. Under these circumstances, a sustained re-opening cannot be guaranteed,' KamAm said.
Since its closure, the fund sold or agreed to sell EUR 1 bn of property in Canada, Europe and the US. Last year, it hired Knight Frank to sell its entire London portfolio valued at about EUR 1 bn.
The fund currently owns a total of 51 properties in nine countries with a combined market value of EUR 6.3 bn.
