By Rechtsanwalt Dr. Wolfgang Schirp The hallmark of an open real estate funds is that investors can always return to a fixed exchange value of its shares and pull out his money back. This property has – in addition to the published over the years, always positive value – this asset class made it very popular. Invested assets currently amount to over 88 billion EURO. The number of investors who have opted for open real estate, goes into the millions. And yet: At present the industry in deep crisis. And there is every indication that it is this time much more seriously than ever before.This time, the crisis has a different dimension. Worryingly many open property funds are currently closed, therefore, refuse to share redemption. Some of these funds, which were discontinued in the autumn of 2008, the redemption of units to complete in the autumn of this year, the two-year maximum allowed by law closing time. And a re-opening is not yet in sight. Two main parameters currently contribute to the detriment of the fund: First, have the funds for years, sometimes decades, the book value of their homes hochgeschrieben “without the real market events have been compared, so it was a positive performance year after year . constitute From this valuation “bubble” we now must come once down. Second, the funds have opened strongly for institutional investors, some of which have invested hundreds of millions, if such “heavyweights withdraw” their money, then the amount of liquidity in the fund is quickly overused.The biggest single fund is currently closed Immoselect of AXA, which are frozen at least 2.78 billion EURO investors’ money. In the two funds are closed DEGI – added – even down 3.6 billion euros. The Morgan Stanley P2 Value blocked 1.45 billion EURO, and the smaller players TMW Real Estate Fund and World DEGI Global Business further 1.2 billion euros. And more funds are threatened with closure. In particular, some mutual funds are currently browsing still dangerously close to the maximum allowable 50% limit on leverage. A further complication is that the macroeconomic situation has not exactly improved. In the U.S. there is talk of impending problems in the market for commercial real estate, which would make those long term funds that have invested there. And also in Europe and Asia, the homes at least not yet Clock displays a sustained upward.For more information on this issue at www. action bund. de This entry was posted on 8 3. 2010 written at 15:43 and is filed under Uncategorized. You can follow any responses to this entry through the RSS feed 2nd 0 follow. Leave a response, or trackback from your own site.
via source