Another student accommodation fund defers redemptions
The HC Mansion UK Student Accommodation Income & Growth fund has suspended redemptions after becoming the latest vehicle in the sector to suffer liquidity problems.
The £45m UK-domiciled fund shares its name and property management company with the £282 million Guernsey-based Mansion Student Accommodation, which also suspended redemptions last October. But its corporate director, Host Capital, said the funds were entirely separate. Christopher Finch, manager of the fund at Host Capital, blamed the suspension on a higher than expected level of redemption requests from investors. “As a regulated manager we took the prudent step to manage the fund liquidity appropriately and differed redemptions. It will be a few months before we put a liquidity facility into the fund and resume normal trading.”
The open-ended fund, which invests in purpose built UK student acommodation, was launched 18 months ago. It has a five-year investment horizon. Another vehicle, the Brandeaux Student Accommodation Fund, suspended redemptions in 2013, also blaming market liquidity problems …