Real Estate Europe: "Personal liability for investors possible": DWS restricts redemptions in real estate fund
Investors in "Grundbesitz Europa" will for now only have limited access to their money. The Deutsche Bank subsidiary is limiting the payout ratio for mature redemption orders.
Düsseldorf-based investment firm DWS, a subsidiary of Deutsche Bank, has temporarily halted the redemption of shares in its troubled real estate fund "Grundbesitz Europa". Christian Bäcker, the managing director of DWS Grundbesitz, explained that this move could "bring personal burdens for investors". The restriction is set to come into effect on Tuesday, with the redemption payout rate for valid redemption requests limited to ten percent starting the following Wednesday.
The measure, which can be adjusted or lifted early depending on liquidity conditions, aims to provide the company with time for orderly real estate sales to bolster liquidity. The company will continue to manage its portfolio, continuing to make real estate sales to increase liquidity, repay debts, and eventually increase the payout rate. Three DWS real estate funds were under pressure after the interest rate hike.
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