News Formal

Charter Hall office fund limits redemptions to 25pc in falling market

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 14 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 9%
  • Publisher: 90%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Falling values have hit investors in the country’s largest office landlord, with Charter Hall limiting redemptions in a $2.5 billion unlisted office fund to just 25 per cent, saying it was unable to sell buildings at prices it deemed fair.

In contrast to listed real estate investment trusts, or REITs, which have suffered hefty share price falls, the valuations of unlisted assets, at a time when many landlords have resisted selling andCharter Hall chief executive David Harrison told last year’s AFR Property Summit that falling share values often bore little relation to underlying asset values andBut the falling tide in office is leaving funds dependent on the sector exposed, as the Lonsec report last year warned was a risk.

“Due to the fund’s significant exposure to illiquid assets and because redemption opportunities during each five-year term are at the discretion of the responsible entity, liquidity risk in the fund is deemed to be high compared with other asset classes.”

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

UniSuper returns 10.3 per cent for MySuper default option thanks to technology stocks, low office exposureThe $115 billion fund’s performance for its MySuper default option outstripped rivals Australian Retirement Trust and AustralianSuper, only just falling short of Aware Super.
Source: FinancialReview - 🏆 2. / 90 Read more »

UniSuper returns 10.3 per cent for MySuper default option thanks to technology stocks, low office exposureThe $115 billion fund’s performance for its MySuper default option outstripped rivals Australian Retirement Trust and AustralianSuper, only just falling short of Aware Super.
Source: FinancialReview - 🏆 2. / 90 Read more »