US bank Morgan Stanley froze its EUR 1.7 bn German open-ended property fund, P2 Value, for subscriptions on Monday, according to a report by news wire Reuters. The company said that the value of properties held by the fund may need to be cut considerably.
US bank Morgan Stanley froze its EUR 1.7 bn German open-ended property fund, P2 Value, for subscriptions on Monday, according to a report by news wire Reuters. The company said that the value of properties held by the fund may need to be cut considerably.
The fund had been closed for redemptions since the end of October 2008. At the end of March, Morgan Stanley said the properties in its P2 Value fund were worth EUR 2.3 bn, In Monday's statement, it said the first results of that evaluation 'point to a significant depreciation', Reuters reported.
A dozen open-ended property funds in Germany were blocked for redemptions late last year in response to mass redemptions. Some of the property funds closed at the time have since reopened. German open-ended property funds (GOEFs) recorded close to EUR 698 mln in net inflows in May, up from the EUR 556 mln booked in April and a sharp increase on the EUR 128.6 mln registered in the same month a year ago, according to new statistics from investment fund body BVI.
