Brandeaux the property investment firm has decided to delist from the Irish stock exchange. Its Student Accommodation Fund first launched over 14 years ago was suspended last July. The fund has consistently yielded positive returns, yet suffered from issues of liquidity with a number of redemption requests. The fund in fact turned bearish on the UK student accommodation sector in July 13 with a note to investors saying there is a "great deal of uncertainty" in the student accommodation market, "created by over £2bn of student accommodation property in the market". The note added this has caused a "considerable 'overhang', which accounts for over 20% of all privately owned UK purpose built student accommodation property".
Brandeaux is currently in the process of closing its vehicles and confirmed that it has made a number of recent sales worth approximately £167m previously held in its Ground Rent Income and Ground Rent Portfolio to distribute returns to shareholders on a compulsory pro rata basis. Just last month the sale of the Thurloe Estate and Strathmore Court realised £140m, Grainger PLC also announced the acquisition of the Chelsea House Portfolio for £160m.
It said: "The directors are acutely aware of the difficulties IFAs face in dealing with their clients invested in the Student Accommodation Funds and the inability to give any precise indication of timing on the creation of liquidity.
"The Student Accommodation Funds and their advisers are working tirelessly to reach the best possible solution for investors and a further statement will be made as and when there is further information of significance to report."
Those familiar with the Brandeaux structure will be aware that Liberty Living is the appointed Property Asset Manager to the Brandeaux Student Accommodation Funds. Liberty manages over 15,000 beds spaces across 17 cities and should be unaffected by the announcement.
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