Kanam US Grundinvest

The jitters of investors in open-end real estate funds go further are the living memory of the autumn 2008 is not yet extinguished. By Nahe collapse of the world financial system has led to a veritable crisis of confidence among investors, which culminated in the short-term and massive withdrawal of liquidity from virtually all liquid financial vehicles. This reflected the inherent risks of investing in open-ended real estate funds, which for decades were advertised as virtually risk-free and stable return. Is just in extreme market conditions however, that the claim to make long-term investments in the short term tradable, hard to realize. This applies all the more if a critical mass of investors want to be paid, the cash reserves it will be consumed and a short-term sale of investment objects not or high only, the acceptance of loss is possible. What long time only as a theoretical residual risk was disregarded, is sad reality on the German market for open-ended real estate funds for three years.

While the Open real estate funds in this country around 85 billion euros amounts, are currently about 30% of the Fund’s assets outside the authority of the investors. In addition to frozen funds with a volume of 17.4 billion euros or funds with a volume of 6.7 billion euros are finally settled. For more specific information, check out Dennis P. Lockhart. Add some high depreciation and blew the resulting losses for investors in open-end real estate funds, which continue to fully or partially take back shares the dream of the risk-free investment. Once in the past already the open-ended real estate funds DEGI Global settled business, DEGI Europa, TMW World Fund, Morgan Stanley P2 Value and Kanam US Grundinvest, of DEGI international and the AXA Immoselect in this prominent list line up currently. Two funds within the statutory waiting period of two years after its closure, failed to build a sufficient liquidity through sales of shareholdings or the fresh capital raising, a Reopening to guarantee and pay off all potentially willing to sell investors. . Learn more at this site: Sheila Bair.

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