German fund manager KanAm said on Tuesday that it has extended the redemption suspension for its Grundinvest open-ended property fund for a further 12 months.

'KanAm will extensively inform investors about the state of the fund in the next weeks,' the company said.

Later this month, the company will also send out a questionnaire to inquire among investors whether they intend to redeem their units. The result of the survey, which will be complete in August, will determine the future strategy of the fund. 'The more investors plan to retain their units, the better the prospects for the survival of the fund are,' KanAm added.

KanAm's Grundinvest fund, which owns 52 assets in nine countries valued at around EUR 4.8 bn, was one of the largest German open-ended funds to close for redemptions in October 2008, before reopening in July 2009. The fund reclosed in May last year following strong capital outflows in reaction to draft German investment laws which propose tighter notice and mininum holding periods for investors.