Hazelview Investments suspends redemptions on Four Quadrant fund

• What Hazelview Investments has suspended redemptions on its $1.3bn Four Quadrant fund, The Globe and Mail reported
• Why Redemption requests total $384m
• What next The suspension will be in place for up to 120 days

Hazelview Investments has suspended redemptions on its Four Quadrant fund, The Globe and Mail reported.

Redemption requests on the $1.3b fund total $384m. The private real estate investment company previously halted redemptions in Q4 2023 but was able to resume in Q1 2024. At yearend 2023, redemptions totaled $229m.

Investors were informed of the latest halt on June 12, according to a memo cited by the Globe. It will be in place for up to 120 days.

The decision to suspend redemptions was made due to the “continued stagnation in private market transaction volumes, rendering the sale of private assets impractical,” the memo said, according to the publication.

The Four Quadrant fund, dubbed 4Q, invests in public and private real estate equity and debt. Its targeted total return is 8%, including a 5% annualized distribution paid monthly. As of March 31, its annualized returns had declined 5.9% over the last year and fallen 2.1% on a three-month basis. Since its inception in November 2011, 4Q had an annualized net return of 7.3%.

By sector, multifamily investments account for 33.0% of the fund’s net asset value, followed by low-rise office at 12.4% and residential at 9.0%. Investments are located and listed across the globe, with the majority in Canada.

Investors are able to request redemptions on the last business day of March, June, September and December. Should the current suspension be in place for the full term, investors will be unable to cash out until the end of 2024.

Ugo Bizzarri is managing partner and CEO of Hazelview Investments, which is headquartered in Toronto. Jeff Tripp is managing partner and president.