On 31 December 2024, we suspended subscriptions and redemptions in the OP-Public Services Real Estate and OP-Rental Yield special common funds temporarily. The reasons for the decision were the exceptional circumstances in the real estate market and the need to protect the interests of unitholders.
The real estate market has slowly recovered, and we have sold certain assets in accordance with the targets of the real estate funds. We are now paying out redemption orders placed between 1 July and 31 December 2024. Unitholders who placed their orders during this period will receive the redeemed funds according to the normal schedule in July 2025.
Despite the payout of redemption orders, the OP-Public Services Real Estate and OP-Rental Yield special common funds will remain closed. This means that subscriptions and redemptions of units in the real estate funds are suspended for the time being. We decreased the management fees of the OP-Public Services Real Estate and OP-Rental Yield special common funds by 50% as of the start of the year. The 50% reduction in management fees will apply for as long as the temporary suspension of orders continues.
Despite the suspension of real estate fund orders, the management and rental of properties, and management of the funds will continue as normal. The majority of properties owned by both funds have tenants, and rental income has remained at a good level. We will let unitholders know as soon as the situation of the real estate funds changes.
You can find the latest news on the funds and portfolio managers' reviews on the funds' webpages. Portfolio managers' reviews for April–June will be published during July.
Frequently asked questions about real estate funds
Which redemption orders are being paid out now?
Redemption orders placed for the fund between 1 July and 31 December 2024, before the temporary suspension of trading in fund units, are being paid out now. Orders placed between this period would also have been due for payment in July according to the fund's original schedule.
In the spring, you said that redemption orders placed last autumn would not be paid until the fund is reopened. Why are you choosing to act otherwise?
During the spring, there have been tentative positive signs in the market for large real estate assets, and this allows us to pay out redemption orders placed in the second half of last year according to the original schedule in July. Despite this, the market conditions are still extraordinary, and the temporary suspension on the funds and redemptions to protect the interests of unitholders remains in place for the time being.
When will the funds be reopened for subscriptions and redemptions?
The suspension of redemptions and subscriptions is temporary, and we are working hard to resume them as soon as possible. We will resume accepting orders as soon as it is possible to execute real estate transactions in a way that is in the interests of the funds' investors.
How has the suspension affected the fund's net asset value?
The suspension does not affect the fund's value, as the net asset value of the funds is calculated normally on a quarterly basis. While subscriptions and redemptions are suspended, the portfolio management for the funds continues normally.
Are the funds' net asset values calculated during the suspension?
Despite the suspension of redemptions and subscriptions, the funds' net asset value calculation and portfolio management continue normally.
Management fees for the funds are also charged during the suspension. We decreased the management fees of the OP-Public Services Real Estate and OP-Rental Yield special common funds by 50% as of the start of the year. The 50% reduction in management fees will continue for as long as the temporary suspension of orders remains in place.
What do I need to do during the suspension?
You do not need to take any action during the suspension.