Two Canada Real Estate Funds Halt Redemptions as They Eye Going Public

Article content(Bloomberg) — Canadian investment firm Avenue Living Asset Management Ltd. is suspending redemptions at two multibillion-dollar real estate funds for months while their boards consider whether to take them public. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Calgary-based manager said the boards of Avenue Living Real Estate Core Trust and Mini Mall Storage Properties Trust have started a review to evaluate the best way to create value for investors. The firm’s management has recommended both funds pursue a “go-public transaction.” Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIn the meantime, investors seeking to withdraw capital will have to wait.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“To preserve flexibility and ensure the equitable treatment of all unitholders during this process, the Trusts will delay the settlement of redemptions for an initial period of up to six months,” the company said in a statement Monday.Article contentThe delay is effective March 31. That’s the date the funds would have had to pay shareholders who redeemed at the end of February. The trusts also won’t accept any new capital while the strategic review is going on. Article contentThe two trusts make up the bulk of Avenue Living’s roughly C$9.8 billion ($7.2 billion) of assets under management, according to the firm’s website. One fund invests primarily in apartment properties in western Canada, while the other owns self-storage assets. Avenue Living also oversees an agriculture fund. Article contentBoth trusts list Avenue Living as asset manager, with Invico Capital Corp. serving as fund manager.Article contentThe move comes at a challenging moment for Canadian alternative-asset managers, many of whom marketed private real estate and credit vehicles as relatively stable income generators while offering periodic redemption windows. Article contentArticle contentAs higher interest rates and property-market volatility weigh on valuations and cash flows, some firms have turned to “gating” mechanisms or redemption delays limit the flow of money going out the door.Article contentInvico, also based in Calgary, recently adopted what it called a “structured liquidity management plan” for one of its own funds after large investors sought to redeem. The firm said it’s trying to balance the need to generate liquidity with preserving net asset value and yield for remaining investors.Article contentAvenue Living didn’t say how much capital had been submitted for redemption at the two trusts or whether the suspension could be extended beyond the initial six-month period. Article contentThe strategic review will assess alternatives that may include a public listing, though there is no certainty it will result in a transaction, the company said.Article contentTrending Trump administration loses push to delay tariff refund fight Economy Saudis pulled deeper into Middle East war after refinery attack Energy PDAC 2026: Hodgson says Canada's mining sector is at a 'hinge moment' while announcing new critical minerals projects Mining Garry Marr: Bad news, Gen Z — The Freedom 55 guy is still working in his 60s and you will be, too Retirement Shocks can force Bank of Canada to hike rates even when economy weak, says deputy Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Trump administration loses push to delay tariff refund fight Economy Saudis pulled deeper into Middle East war after refinery attack Energy PDAC 2026: Hodgson says Canada's mining sector is at a 'hinge moment' while announcing new critical minerals projects Mining Garry Marr: Bad news, Gen Z — The Freedom 55 guy is still working in his 60s and you will be, too Retirement Shocks can force Bank of Canada to hike rates even when economy weak, says deputy Economy