Aberdeen forced to close two German property funds again

Aberdeen Property Investors' German property fund manager Aberdeen Immobilien KAG has, again suspended redemption and issuance of fund shares for its DEGI International and DEGI Europa open-end funds. The two were among those that closed in October 2008 due to sudden rush of, mainly, institutional investors seeking liquidity. DEGI International re-opened at end-January this year and, while February saw a drain of some e260m, the outflow was down to some e18m by May. "A complete recovery and a return to a net inflow of capital seemed within reach," AIK said. "Yet in June of this year, the public debate regarding possible loss exposures for open-ended property funds flared up again, creating renewed unease among investors." (See upcoming PFE/PIE issues for full story)