Aberdeen Asset Management will shut down its €1.3 billion ($1.8 billion) Degi Europa mutual property fund because of a surge in the number of investors wanting their money back.
The fund aims to sell all of its property assets within three years, returning money to its mostly German investors in half-yearly installments starting January 2011, Aberdeen Asset Management’s German unit said on its website Friday.
The fund halted all redemptions at the end of October 2008, when investors scrambled to withdraw money as the financial crisis escalated. The fund was scheduled to open again on Oct. 30, after reaching the two-year limit for suspending redemptions. During that time, falling property values made it more difficult for the fund to carry out disposals.
Last month, Kanam Grund Kapitalanlagesellschaft mbH became the first asset manager in 50 years to close a German real estate mutual fund when the Frankfurt-based company announced the liquidation of its US-Grundinvest fund. Morgan Stanley is scheduled to open its P2 Value fund Nov. 1 after suspending redemptions two years ago.