Investors in the frozen M&G property fund will remain trapped indefinitely after the fund manager said the suspension will continue.
The £2.5bn fund is required to update investors every 28 days, but has simply said that the fund would not reopen until “cash levels have been sufficiently restored”.
M&G was forced to gate the fund at month after a wave of redemption requests threatened to push it into fire sales of assets to meet the demand.
M&G has said it is working hard to improve its cash position, with contracts exchanged on or completed on £70.4m of assets since November and another £67.2m of property under offer or in solicitors’ hands.
In its update M&G said it had sold Riverside retail park in Edmonton for £51.4m and an office development in Staines for £19m, which appears to be a loss on the £20m-plus it paid for the site in 2015.
M&G will need to sell far more assets to match the £901m that was pulled out of the fund in the ten months to November, when redemptions were suspended.
