FUNDRAISING NEWS | November 21, 2024
Toronto-based real estate investment manager KingSett Capital has halted investor redemptions and payments from its $3.5B Canadian Real Estate Income Fund as it seeks to build cash reserves in the face of an ongoing slump in the sector, according to media reports.
The fund is an income-oriented investment vehicle that aims to support a diverse portfolio of long-term real estate holdings across multiple asset classes and key Canadian markets. Price volatility in those markets and higher interest rates have made it difficult for the firm to sell properties and raise money.
KingSett is also facing issues with developer Thind Properties, which had one KingSett-backed property recently placed in receivership with another two reportedly likely to soon join it. The three projects represent approximately $300M in investment from KingSett.
In an email to Bloomberg, CEO Rob Kumer said the fund will restart distributions a year from now, in December 2025, adding that the firm is focusing on recovery by retaining liquidity and fortifying its balance sheet.
