Aug. 20 at 8:43 PM
Invesco is cutting management fees by 20% for investors in its
$12.7 billion real estate fund as it works to reduce a backlog of redemption requests, Bloomberg reported.
The Invesco Core Real Estate–USA (ICRE) fund has about
$2.2 billion in pending redemptions. The open-ended fund has been unable to fully meet investor withdrawal requests amid an uneven U.S. commercial real estate recovery.
Investors will also be able to exit positions at a discount through an upcoming repurchase offer. The measures are aimed at easing what Invesco described as a “high redemption queue.” Average annual redemptions have represented 5.3% of the fund’s NAV since 2022, versus a historical 3.5% average.
Private real estate managers continue to face challenges generating returns from assets purchased at elevated valuations, although AI-driven data-center development has improved returns for some investors.
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