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AXA property fund to remain frozen for a further year

FRANKFURT, Nov 12 (Reuters) - AXA Real Estate, part of French insurer AXA, will keep its 2.7 billion-euro ($3.68 billion) German property fund frozen for another year as the market is still stuck in a liquidity crisis. Axa Immoselect -- the fund run by AXA Investment Managers Group subsidiary Axa Real Estate -- was due to reopen later this month, after being shut and reopened several times over the last year, to prevent fire-sales by credit-crunched investors. Since February it has remained shut. On Friday, the management said that the fund, which invests in European office and retail properties, would remain closed due to a lack of market liquidity and shaky investor confidence following recent moves by three other funds to be wound up. "Selling off properties under such unfavourable conditions would damage AXA Immoselect's image," the chief executive of AXA Investment Managers Deutschland, Achim Graefen, said, adding that he was aware that AXA was demanding a lot of patience from its investors by remaining closed for 12 more months. Over the past two months, Aberdeen Asset Management, Morgan Stanley and KanAm Group have all announced the liquidation of real estate funds. There are currently eight open-ended real estate funds frozen in Germany, with a combined volume of 20 billion euros. ($1=.7332 euros) (Reporting by Josie Cox; Editing by Greg Mahlich) Keywords: AXA/REAL ESTATE (josie.cox@thomsonreuters.com; +49 69 7565 1207; Reuters Messaging: josie.cox.thomsonreuters.com@thomsonreuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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