CBRE Investment Management has delayed by three months some third-quarter redemption requests from investors looking to exit its U.K. Property authorized Investment Fund, due to “ongoing market conditions, a spokesperson said on Thursday.
Investors who put in requests to withdraw money from the fund will receive “around half” of their redemption payments in January, with the remainder to follow “as soon as practically possible”, the spokesperson said by e-mail.
CBRE said in October it was deferring redemption requests made in the second quarter from the £1.7-billion ($2.02-billion) fund.
The fund will pay out all the redemption requests received in the second quarter “in the coming weeks”, the spokesperson said, adding that CBRE was seeking to preserve liquidity in “a very challenging environment.”
Open-ended real estate funds in Britain have been battling to meet a surge in demand for redemptions against a backdrop of high inflation and economic uncertainty, as valuations come under pressure from rising interest rates.
U.S. fund manager BlackRock and British asset manager M&G are delaying redemptions from U.K. property funds managing around £8.1-billion of assets, Reuters reported on Wednesday.
In October, investment manager Columbia Threadneedle suspended dealing in its CT U.K. Property authorized Investment Fund, aimed at retail investors. The fund, which was worth £364-million at the end of December, remains suspended, a spokesperson said on Thursday.
It also switched its £2.1-billion Threadneedle Pensions Pooled Property Fund to monthly from daily withdrawals in October. That change remains in place, the spokesperson added.
Schroders, which in October said it was delaying second-quarter payments on its £2.7-billion Schroders Capital U.K. Real Estate Fund, made those payments on Jan. 3, a spokesperson said by e-mail. The firm was still “in active dialogue” with its clients on third-quarter redemption requests, the spokesperson added.