Business

2 real-estate funds block redemptions

Two real-estate funds have halted redemptions because investors have tried to take out too much money, Great-West Life Assurance Co. and its subsidiary London Life Insurance Co. said.

Two real-estate funds have halted redemptions because investors have tried to take out too much money, the funds said Tuesday.

Great-West Life Assurance Co. said it imposed a "temporary moratorium" on redemptions from its Canadian Real Estate Investment Fund No. 1, while Great-West subsidiary London Life Insurance Co. banned redemptions from London Life Real Estate Fund 2.17G.

"Given the current economic environment, redemption requests have recently increased. Real estate assets are generally less liquid than other major asset classes and cannot be rapidly liquidated," the companies said in identical statements.

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