Fund remains closed for redemptions
Morgan Stanley (MS.N) froze its 1.7 billion euro ($2.4 billion) German open-ended property fund, P2 Value, for subscriptions on Monday, saying the value of properties held by the fund may need to be cut considerably.
The fund had been closed for redemptions since the end pf October 2008.
A dozen open-ended property funds marketed in Germany were blocked for redemptions late last year as investors desperate for cash amid an across-the-board slide in asset prices redeemed fund units, forcing closures as many property funds’ liquid assets threatened to fall below the legal minimum of 5 percent.
Read Peter Starck’s full article “Morgan Stanley freezes German real estate fund” in Reuters (July 13, 2009)