Degi, part of Aberdeen Property Investors, said today it would end the suspension of redemptions from its Degi International fund at the end of this month but has extended a redemption freeze on its Degi Europa fund.
Degi said its decision to end the redemption freeze on its Degi International fund had ‘widespread support from sales partners and major distribution channels.
'Similarly, large institutional investors, which represent less than 10% of the fund, are satisfied by the quality of the holdings and have declared their willingness to continue holding units’.
It follows the inflow of €65m (£61m) in new investor capital into the fund since redemptions were suspended on 30th October last year which has improved liquidity.
After ending the suspension of redemptions the Degi International fund will have access on liquid reserves of around 25% of fund assets.
In addition to the inflow of fresh investor capital, there has also been an increase in liquid assets available on a daily basis as a result of long-term earmarked bonds being reallocated to cash.
Degi said the high letting ratio of around 98% and the broad distribution of the portfolio properties across a large number of countries ‘are indicative of the good quality of the property assets’.
However, Degi has extended the suspension of redemption of units for Degi Europa fund for a further nine months.
It said that since the suspension of redemptions of units on 30 October 2008, it has not been possible to secure sufficient liquidity to end the suspension.
Degi said it will continue its efforts to increase the level of liquid assets in the fund and ‘expressly try to end the suspension of redemption early’.