Identifying and structuring profitable real estate investments, however, requires substantial market insight as well as substantial legal, commercial and technical know-how.
Furthermore, liquidating real estate investments is relatively time consuming and costly. Real estate investment funds offer a suitable vehicle for investors who wish to profit from the comparatively lower risk of real estate investment but require higher flexibility of their investment.
Leading the field is Kan Am itself which has realised €3.9bn.
The largest amounts still outstanding are concentrated on three funds – SEB Immoinvest (4.3bn), CS Euroreal from Credit Suisse (€2.3bn) and Kan Am grundinvest (€2.03bn).
The writedown plan triggered “massive uncertainty among investors” and significant outflows, Frankfurt-based SEB said in a statement, without giving the scale of the redemptions.
Kan Am said it was “compelled” to halt redemptions in response to “fears of losses among investors and asset managers, resulting in those parties liquidating portfolios as a precaution.” Susanne Ludwig, a spokeswoman for the Munich-based asset manager, said outflows since May 3 totaled “hundreds of millions of euros.” Basically what happened is that in Germany, where it appears assets are just as mismarked as in the US, the administration is finally realizing that by perpetuating accounting fraud the final result can only be catastrophic.
The GOEREFs that remain open to redemption and subscription activity in May 2012 typically have captive distribution networks - for example a retail banking network - while those funds in liquidation typically do not.
The result: all those who have hoped Germany would encourage accounting fraud with the same zeal that the US has, are now panicking and attempting to bail out of the abovementioned real estate funds.or for that matter how imminent monetization is EUR positive), Bloomberg is reporting that the liquidity crisis in Europe has struck smack in the middle: after the Fin Min released a draft bill to forcibly write down real estate asset holdings by 10, investors in certain mutual funds have panicked and attempted massive redemptions, which in turn forced redemption halts by these funds which likely are woefully undercapitalized to begin with.This is just the beginning of the liquidity squeeze moving from the periphery to the core.When an entity chooses or is forced by a legal judgment or contract to turn assets into a "liquid" form (cash). An individual may choose to liquidate his or her possessions or investments to pay off creditors, convert assets to cash for spending or because the investments are not going to increase in value and the investor wants to re-allocate funds.2.Businesses are best known to liquidate assets as a part of bankruptcy procedure, but the process can also be used by businesses to free up cash, even in the absence of financial hardship.