A student accommodation fund listed offshore has become the latest in a string of such vehicles to be suspended after a spate of withdrawals used up all its cash reserves.
The £282m Channel Islands-listed Mansion Student Accommodation fund said cash reserves have been "exhausted" through continual demands for redemptions from investors.
All of the fund's five share classes - in sterling, US dollar, Singapore dollar, Swiss franc and the euro - have been closed to both redemptions from existing investors and purchases from new investors, according to a document filed on the stock exchange.
The suspension applies to anyone who has opted to sell after the 1 October.
"The reason for the suspension is the continuing net redemptions from [the fund's] cells have exhausted the cash reserves more quickly than they can be replenished," director Graham Basham said in the update.
The fund, which is promoted by Dartmoor Capital, held 10% of its net asset value in cash in July, but this has been eaten away as investors sell out of the fund, with the group now looking at a refinancing of the vehicle to free up liquidity.
The student accommodation funds sector has already been hit by a string of suspensions, and in June this year IFAonline's sister title Investment Week exclusively revealed that one of the largest in the space, the £1bn Brandeaux Student Accommodation fund, had been suspended.
Investors had been queuing to exit the troubled for vehicle for as long as 27 months, and Brandeaux later confirmed it had suspended its entire eight-strong fund range following an investor rush for the door. The group recently announced its student accommodation fund would take a 4% write down on its net asset value.
Meanwhile in March Opal Property Group, which runs student accommodation funds, fell in to administration.
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