OP halves the management fees of their real estate funds – “Customers have hoped to come”

OP Fund He announced that it would halve the management fees for the real estate funds they closed so far.

This means that the management fees for OP Rental and OP Service Properties Funds fall from 1.9 % to 0.95 %.

According to OP, the rewards will be charged halved for as long as the temporary interruption of assignments continues.

“Our clients have wished for a response in OP Fund Fund Management Funds, and we have decided to halve the rewards,” says OP Fund Fund Company CEO Juha Takala in the company’s bulletin.

Before the discount now made by OP, the rewards were able to wake up in customers. The shareholders of the funds have considered it unfair that full fees have been charged for the funds, even though OP has so far suspended the redemption and entries of both funds.

OP’s real estate funds interrupted the redemption at the turn of the year due to the difficult situation in the real estate market.

According to the release, towards the end of last year, it became increasingly clearer that it is currently not possible to sell larger property packages while taking care of the shareholders. In other words, it is difficult to obtain cash to pay redemption.

Although the redemption and entries of the funds have been suspended, the fund portfolio management and property leasing and management of the property will continue as normal, according to OP.

Most of the properties of both funds have been leased and rental income has been maintained at a good level, according to OP.

“The interruption of redemption and entries is temporary and we monitor the market situation closely. We strive to restart the markings and redemptions as soon as the real estate market situation stabilizes, ”Takala says in the release.