The statement followed reports earlier today that the German fund is looking to sell the Paris assets. The report added that KanAm is believed to have appointed property adviser DTZ to carry out the sale of the five buildings. KanAm's core euro 3.2-billion ($3.8-billion) Grundinvest fund, which holds assets in Paris, London, Amsterdam and Brussels, was frozen in January after withdrawals of euro 700 million ($831 million) threatened its liquidity. Two days earlier, it had been forced to freeze its $579-million US fund for the same reasons.
KanAm's funds had been top performers in the sector with returns of more than 6%. But the firm has been hit hard by accounting concerns and a sell recommendation from a German ratings agency. Then it got caught up in investor panic over the weak performance of Germany-focused funds, particularly Deutsche Bank's Grundbesitz-Invest fund, which was frozen in December after a run on withdrawals. The Deutsche fund, due to reopen soon, is to sell euros 1 billion ($1.2 billion) of German property through agent Jones Lang LaSalle.
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