AEW Suspends Redemption Payouts for Core Open-Ended Fund Due to Market Uncertainty

GI Partners, Bay Area, GI Real Estate Essential Tech + Science Fund, Hayward, Redwood City, Santa Clara

By Jon Peterson

Boston-based AEW Capital Management has chosen to suspend redemption payouts to investors in its Core Property Trust open-ended commingled fund, according to sources that are aware of this situation.

AEW declined to comment when contacted for this story.

The commingled fund has a major presence on the West Coast. This region of the country is where 41.1 percent of the assets in the commingled fund are located and is by far by the biggest exposure by geography for the fund, as stated in a board meeting document from the Ohio Bureau of Workers Compensation. The rest of the exposure is 27.87 percent in the eastern states of the country, 27.49 percent is allocated in the South and 3.54 percent in the Midwest.

AEW would like to use the time to get a better read on how the market may react over the next few of months before it makes any long-term decisions. The commingled fund had a redemption queue of $150 million and roughly an entry queue of the same amount through the first quarter of this year, according to industry sources.

The Core Property Trust had a net asset value of $7.2 billion, as of the end of 2019. The commingled fund looks to buy a mixture of office, retail and industrial assets on a nationwide basis. It has been operational for 12.5 years. During that time frame, it has been able to outperform its benchmark, the NFI-ODCE index by 80 basis points. The returns have been 5.2 percent for the commingled fund and 4.4 percent of the index.

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