(Bloomberg) — Invesco Ltd. is cutting management fees by 20% for investors in a $12.7 billion real estate fund, as the firm grapples with a backlog of redemption requests.

Clients of the Invesco Core Real Estate—USA fund, known as ICRE, can also cash out at a discount in an upcoming tender offer, the firm said in a recent investor letter reviewed by Bloomberg. Both measures are part of a push to ease what the company called an“elevated redemption queue.”

Invesco’s private real estate fund targets income-producing propertyfor institutional backers such as public pensions, and was designed to give them periodic exit opportunities. But it hasn’t allowed investors to take out all the money they’ve requested amid an uneven…