Canadians Are Furious After Real Estate Funds Lock Up Their Money
Funds stung by the property downturn limit client withdrawals, after assuring ordinary investors they were safe
Toronto’s real estate market is struggling after years of significant growth.
Photographer: Cole Burston/BloombergAndre El-Baba never imagined an investment fund could trap him.
A lifelong property manager from Vancouver, he’d spent decades navigating real estate markets and thought he understood risk. So when he put money into Romspen Mortgage Investment Fund in 2022, it felt like a safe, sensible choice. Such private real estate funds had become a popular way for Canadians to invest in developing new houses and condominiums, riding a construction boom that had lasted two decades. They offered solid returns, regular payments and the ability to cash out at will.