Following German open-ended real estate fund SEB ImmoInvest’s liquidation resulting from a one-day reopening, CS Euroreal is facing the same fate.
CS Euroreal’s fund managers announced the final closing of the fund and its liquidation owing to the high volume of redemption requests received on the first day of re-opening.
“The liquidity available for investors’ redemptions was not sufficient. This is a clear message from our investors: the redemption requests have significantly exceeded the forecast. This means that the only option is a liquidation of the fund,” said Karl-Heinz Heuß, CEO of Credit Suisse Asset Management Immobilien KAG.
In order to treat all investors equally, none of the requests for redemption received will be met. Instead, the fund’s assets will be sold over a period of five years and investors will receive the first payment in the second half of 2012, at the latest by the end of the year. The fund manager also aims to sell off properties quickly and carry out payments every six months.
The fund had been frozen since 19 May 2010. Before the re-opening, the fund manager had lifted the fund’s liquidity to 32%.
CS Euroreal has a value of €6bn and its portfolio includes properties in Europe with about 43% in Germany and most of the rest in France, UK and the Netherlands. About 60% of the assets are office buildings followed by 30% invested in restaurants and retail. The remainder of the portfolio is split between logistics, car parks, hotels, residential and leisure.
Among the fund’s properties are the mixed-use building Telegraphenamt in Munich, the shopping centre Ringcenter III in Berlin and an office building at Berlin’s Charlottenstrasse.
