FRANKFURT, Jan 19 (Reuters) - German property fund manager KanAm froze a second open-ended fund on Thursday after investors redeemed one-fifth of the fund's value in 24 hours, dealing a new blow to the 90 billion-euro ($108.7 billion) industry.

KanAm Grund Kapitalanlagegesellschaft mbH said it had closed its 3.2 billion-euro KanAm grundinvest fund for three months to prevent liquidity from breaching legal minimum requirements after an outflow of 700 million euros.

"It's a panic, it's a virus," KanAm spokesman Michael Birnbaum told Reuters.

KanAm grundinvest became the third German open-ended real estate investment fund to shut in just over a month to halt a run on assets. On Wednesday, KanAm closed its $579 million US-grundinvest fund after outflows of $50 million.

Germany's biggest bank Deutsche Bank (DBKGn.DE: Quote, Profile, Research) froze a 6 billion-euro fund in December, saying it needed to work out whether assets were correctly valued and write-downs needed.

http://today.reuters.com/investing/finance...-57_L19268013:1