Australia's MA Credit says property credit fund suspends redemptions until March
Australia's MA Credit says property credit fund suspends redemptions until March Oct 21 (Reuters) - Australia's MA Credit Income Trust MA1.AX said on Wednesday an unlisted real estate credit fund in which it has exposure would suspend investor withdrawals until at least next March, citing weaker housing market conditions and slower loan repayments.
MA Secured Loan Series (MA SLS) will halt applications and redemptions from October 31 until at least March 31, 2027, replacing an earlier monthly redemption cap of up to 1%
Deteriorating residential property market conditions were extending timelines for asset sales and loan refinancings, making the timing of borrower repayments less certain, according to MA SLS
Australia's property markets, particularly in Sydney and Melbourne, has cooled due to the government's tax overhaul targeting investors and interest rates near 15-year highs
The suspension will be reviewed monthly and may be varied, extended or lifted, MA SLS said, adding that there are currently no changes to its scheduled monthly distributions
(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Sherry Jacob-Phillips)
((JasmeenAraIslam.Shaikh@thomsonreuters.com;))
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