German property fund CS Euroreal to be unwound
FRANKFURT May 21 (Reuters) - Credit Suisse Asset Management plans to unwind its German real estate fund CS Euroreal, worth close to 6 billion euros ($7.6 billion), because it does not have sufficient liquidity to pay back investors.
"The demands for redemptions far outweighed the original expectations. Therefore there is no alternative to liquidation," fund manager Karl-Heinz Heuss said on Monday.
The company plans to sell off the fund's remaining properties over the next five years, with a first payout to come in the second half of 2012.
Further payouts are expected to follow on a half-yearly basis, Credit Suisse Asset Management said in a statement.
Open-ended property funds were once popular among German savers, but SEB ImmoInvest and a number of peers barred investor exits at the peak of the banking sector crisis in autumn 2008 to avoid being forced into asset fire sales to meet the cash calls.
CS Euroreal and SEB's 6 billion euro fund SEB ImmoInvest, which is also being liquidated, were among the biggest frozen funds. ($1 = 0.7860 euros) (Reporting by Maria Sheahan)
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