Bloomberg (gated) with more dire real estate news. This time from Canada where a mortgage fund has stopped paying redepmtions:
- Canadian real estate lender Romspen Investment Corp.
- The Toronto-based firm will “temporarily defer payment” of redemptions until it has more clarity on when borrowers will repay loans and the fund can get cash from asset sales, according to a letter to investors dated Nov. 8. “Loan payoff activity remains suppressed.”
- The Romspen Mortgage Investment Fund had C$2.8 billion ($2.1 billion) invested in 134 mortgages at the end of June, about evenly divided between Canadian and US projects. Managers are now working to accelerate the sale of some assets to free up cash.
