Brandeaux, the London-based property fund manager, has become the latest in the real estate sector to suspend redemptions.
Before implementing the measure, the firm had been bucking the industry’s downward trend, as all its funds were in positive territory. In the 12 months to the end of November 2008, its Isle of Man domiciled Ground Rent Income Fund had returned 8.01% and its Student Accommodation Fund 10.7%.
The company noted that the suspension had been brought about by “a sudden and high level of redemption requests” that it said had been “initiated by a broker on behalf of its clients, seemingly based on the broker’s pessimistic view of the general residential property market”.
Brandeaux added it had “no intention of engaging in a fire sale”, so was forced to suspend trading.
