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Can't Sell A House? What Happend When You Can't Sell A Fund?

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It takes time to sell a property in todays market, but not to be able to sell a property fund. :ph34r:

From FT page 18 on 14.12.05

Deutsche Bank has taken the unprecedented step of closing its doors to hundreds of thousands of its German property fund investors in a move that analysts said could trigger a crisis across the open-ended property funds sector.

DB Real Estate said last night that in consultation with BaFin, Germany's chief financial watchdog, it has frozen its 6.1bn euros Grundbesitz-Invest fund to prevent a run on withdrawals from the fund caused by the threat of asset write-downs in it's underlying property holdings.

...

Brokers said the outflows in the past two days has been very high, following news of the pending asset revaluation.

Deutsche Bank freezes property fund

BaFin demands Deutsche Bank explain fund freeze

Deutsche Bank unit DB Real Estate may be sued by investors over fund closure

BaFin demands Deutsche Bank explain fund freeze

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Good find. I thought the German property market had not suffered the price inflation that elsewhere has. Does this fund hold lots of foreign property?

I guess this is one of the problems with open-ended funds. It would have been, theoretically at least, been easier to sell in an investment trust form, of course the price would have been annihilated with a run on it.

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Dogbox is the "German Investments Pro" on HPC!

Any comments? :unsure:

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  • 332 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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