Suspended Brandeaux property fund to take NAV writedown

Embattled property fund house Brandeaux has admitted the net asset value on its suspended £900m Student Accommodation fund is likely to be 4% less than anticipated, while the £92m Ground Rents fund will lose 5% of its NAV.

Brandeaux is trying to sell 80% of the property in the Ground Rents fund in a bid to free up liquidity for investors, but said in an update expected proceeds of the sale would be less than the fund's most recent valuations had indicated. The group is in the advanced stages of three sales for the Ground Rents fund which it expects to complete next month, it said. Once the sale transactions are completed, the directors will release the proceeds to shareholders as soon as possible, Brandeaux said. "The net asset value of the Ground Rent funds from which the monthly share price is derived...