The New Star International Property Fund continues to have a dealing suspension, meaning that nobody can buy or sell units in the fund. This was introduced in November 2008 after a high level of redemptions meant the fund had run out of liquid assets that could be sold quickly to raise cash.
When we last reported on the fund in July 2009, Henderson New Star had informed us that they were in the advanced stages of selling several properties within the fund to raise sufficient liquidity. They were hoping these sales would have been completed by the end of 2009 and that they would be in a position to re-open the fund.
Unfortunately this has not been the case. Commercial property can take many months to sell, especially at a time when the market is falling like it has been over the last couple of years. This is why it has taken so long to raise adequate cash to get the portfolio in a sufficient liquid state to re-open it to dealing once more.
Henderson New Star has announced that they are close to completing the final sale of a property and expect this to take place early this year. Once this sale is completed, they will be in a position to announce a firm date for re-opening the fund.
This has of course been frustrating for investors and New Star is acutely aware of the need to allow investors to buy or sell units as soon as possible. However, they have also been committed to obtaining what they regard as a fair price for the properties so as not to disadvantage any investors who wish to continue holding the fund.
As soon as we hear more, we will keep investors fully informed.
When we last reported on the fund in July 2009, Henderson New Star had informed us that they were in the advanced stages of selling several properties within the fund to raise sufficient liquidity. They were hoping these sales would have been completed by the end of 2009 and that they would be in a position to re-open the fund.
Unfortunately this has not been the case. Commercial property can take many months to sell, especially at a time when the market is falling like it has been over the last couple of years. This is why it has taken so long to raise adequate cash to get the portfolio in a sufficient liquid state to re-open it to dealing once more.
Henderson New Star has announced that they are close to completing the final sale of a property and expect this to take place early this year. Once this sale is completed, they will be in a position to announce a firm date for re-opening the fund.
This has of course been frustrating for investors and New Star is acutely aware of the need to allow investors to buy or sell units as soon as possible. However, they have also been committed to obtaining what they regard as a fair price for the properties so as not to disadvantage any investors who wish to continue holding the fund.
As soon as we hear more, we will keep investors fully informed.
