Greenman Open, a €1.2 billion German supermarket property fund, has sold a portfolio of seven properties for nearly €100 million. This sale is part of the fund's plan to handle a freeze on investor redemptions that started late last year due to a rise in withdrawal requests.
Key Details
The fund confirmed the sale to US asset manager PGIM. Proceeds will go toward repaying debt and covering transaction costs, according to Neil O’Keeffe, chief executive of Greenman Investments. Investors who submitted redemption requests as early as late 2024 will need to wait for more property sales before receiving any funds. Greenman Open expects to start repayments no sooner than the second quarter of 2027.
As of early March, the fund had €140 million in outstanding redemption requests. O’Keeffe noted that an updated figure would be available in the upcoming 2025 annual report. The fund activated a redemption gate late last year after a large increase in withdrawal requests during the third quarter. Greenman Open typically invests in over 80 retail properties in Germany, leased to major supermarket chains like Aldi, Lidl, Edeka, and Rewe.
Background
Greenman is also marketing another large portfolio to meet further redemption requests. The company has apologized to investors for delays in auditing its annual report, which has added to the current situation.
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The ongoing redemption freeze and property sales may affect investor sentiment in real estate funds, especially those focused on retail properties. Investors will look for updates on redemption timelines and the results of future property sales to assess the fund's recovery prospects.
Based on reporting by: irishtimes.com