Street Talk understands North American investment giant Invesco is the latest in a string of real estate managers to limit fund redemptions down under.
An investor letter seen by this column shows a “notice of withdrawal gating” for the $41 million Invesco Global Real Estate Fund – Class A in late August citing a wave of redemptions. The fund feeds into the $31.9 billion global strategy. “As of 30 August 2023, we advise that redemptions have exceeded 15 per cent of the fund’s assets over a rolling 90-day period … redemption requests received after this date will be temporarily deferred and placed in a queue until satisfied.”
The fund, launched in 2019, is exposed to more than 200 properties in major cities around the world across office, residential, industrial and retail. Locally, it holds interest in 77 King Street in Sydney, home to Apple’s flagship retail store.
Performance for the year to July 31 has been in the red.
All this comes amid a reckoning in the commercial property sector as rising rates and the work-from-home trend crunch valuations. Invesco assured investors that it had “sufficient liquidity” to satisfy redemptions to date. It blamed the elevated redemptions on investors rebalancing their portfolios “given market and macroeconomic volatility, deleveraging and/or satisfying collateral calls”.
It’s a worrying sign, but it’s got nothing on Platinum Asset Management which announced investors pulled $912 million from its funds in August.
IFM’s private equity unit splashes $80 million on software firm Tally Group, writes Aaron Weinman.French billionaire Francois Pinault’s family investment company agreed to buy a majority stake in the Hollywood talent giant Creative Artists Agency from TPG Capital, The Wall Street Journal reports.KPMG’s US partners have been told that they will be put on 50 per cent pay during six months of gardening leave if they quit to join a rival, The Financial Times reports.
The chart
Liontown’s big dream is to finish the $895 million Kathleen Valley lithium mine, on track to start producing in 2024.
