Glanmore Property investors may face four-year wait

Investors in the Glanmore Property fund could face a redemption freeze of up to a further four years.

Investors in the fund were told this week that a special resolution has been passed to keep in place a ‘redemption postponement regime’ – essentially a block on investors being able to redeem their capital.

Investors were told of the plans in March this year, but received a warning this week it could remain for a maximum of four years.  It leaves them with a possible exit date of 2016.

Moreover, in an attempt to pay off debt within the Glanmore fund, the directors had been looking to raise new capital.

It is unclear through its stock market filings if they achieved this. Wealth Manager was unable to obtain clarification at the time of going to press.

The latest announcement on Glanmore may be unwelcome news for a number of ex-Tilney investment managers who invested their own and client money in the fund, which posted an 82.4% loss over the last five years.

Investors stuck in the vehicle had hoped to liquidate their holdings this summer, when a 48-month suspension was due to come to an end.

The Glanmore Property fund was managed by commercial property manager and property services group Cardales, which was acquired by Tilney Asset Management in 2004.

Deutsche Bank acquired Tilney in December 2006, just before the fund ran into difficulty when the real estate market turned sour late in 2007. Glanmore’s fund stopped redemptions shortly afterwards and investors have now been frozen out for four years.