This afternoon I received an email from Murray Mitchell, Vice President Real Property / Portfolio Manager Investors Real Property Fund.  He has explained the reason the “mechanics lien” that was in place on their property and debunked any cash flow concerns that were insinuated. 

I believe it is best stated in Murray Mitchell’s words so I have pasted the email below:

Hello Stuart;

Thank you for the opportunity to set the record straight regarding Investors Real Property Fund (IRPF – “The Fund”).

·        The Fund is in excellent financial health with $1.3 billion dollars in liquid investments along with $2.1 billion dollars in real property assets.

·        IRPF is the only mutual fund of its kind in Canada and enjoys a strong 26 year track record. The references you make to other “funds” are not relevant to this situation.

·         IRPF owns the property in Delta BC against which a lien has been attached. The lien resulted from a dispute between contractors working on renovating the site to accommodate new tenants and did not result from actions taken by Investors Real Property Fund. We have been advised that this dispute between the contractors is expected to be resolved shortly.

Thank you again for the opportunity to put the facts on the record and trust that your blog will be revised to reflect these facts.

Yours truly,

 Murray Mitchell

Vice President, Real Property

Portfolio Manager, Investors Real Property Fund

If Investors Group Real Property Fund is in good standing maybe they will benefit from the next wave of the mortgage melt down that might be just around the corner.

Commercial Real Estate is under pressure in many communities throughout Canada and the United States due to the recession and similar teaser rate lending practices that have crippled the US Housing Market.  The ramifications of the NINJA mortgage (No Income No Job or Assets) have spread to the Commercial Real Estate Market; however, there has been a delay in affect because the terms were longer in duration than their residential counter parts.  This year, 2010, there is a massive bulk of these commercial mortgages due to be renewed.  This will likely happen at higher rates so any vacancy may be devastating, especially if the consumer doesn’t come back soon.