Toronto-based real estate manager KingSett Capital Inc. has decided to halt payments to investors in its KingSett Canadian Real Estate Income Fund, which has a gross asset value of C$4.9 billion (approximately $3.5 billion). The firm is facing challenges in the real estate sector and needs to conserve cash.
The fund's portfolio consists of significant office properties across Canada, highlighting the impact of current market conditions on real estate investment strategies.
As a result of these challenges, investors will not receive any income distributions for the next year and will be unable to redeem their units during this time.