Hazelview Investments suspends redemptions for Four Quadrant Fund

• What Hazelview Investments has suspended redemptions for its $1.3 billion Four Quadrant fund. The Globe and the Post reported
• Why Redemption requests total $384 million
• What next The suspension is expected to last up to 120 days

Hazelview Investments has suspended redemptions for its Four Quadrant Fund. The Globe and the Post reported.

Redemption requests for the $1.3 billion fund total $384 million. The private real estate investment company had previously suspended redemptions in the fourth quarter of 2023, but was able to resume them in the first quarter of 2024. At the end of 2023, redemptions totaled $229 million.

Investors were informed of the latest halt on June 12, according to a memo released by the globeThe validity period is up to 120 days.

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

The Four Quadrant Fund, called 4Q, invests in public and private real estate stocks and bonds. Its total return target is 8%, including a 5% annual distribution paid monthly. As of March 31, its annual returns had declined 5.9% over the past year and 2.1% on a three-month basis. Since its inception in November 2011, 4Q has had a net annual return of 7.3%.

By sector, multifamily housing represents 33.0% of the Fund’s net asset value, followed by low-rise office buildings at 12.4% and residential buildings at 9.0%. Investments are located and listed worldwide, with the majority in Canada.

Investors can request redemptions on the last business day of March, June, September and December. If the current suspension applies for the entire term, investors will not be able to make withdrawals until the end of 2024.

Ugo Bizzarri is Managing Partner and CEO of Toronto-based Hazelview Investments. Jeff Tripp is Managing Partner and President.