M&G Investments has become the third real estate fund manager to suspend trading in its open-ended property fund for retail investors.
Its £4.4bn M&G Property Portfolio is the largest fund yet to close for redemptions.
Earlier today Aviva Investors suspended trading in its £1.8bn property fund and yesterday Standard Life suspended trading in its £2.9bn UK Real Estate Fund.
M&G said: “Investor redemptions in the fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum.”
“Redemptions have now reached a point where M&G believes it can best protect the interests of the funds’ shareholders by seeking a temporary suspension in trading.”
The fund manager said it would allow it “time to raise cash levels in a controlled manner, ensuring that any asset disposals are achieved at reasonable values”.
Orders placed after 12pm today will not be processed until the suspension is lifted. M&G will review the suspension every 28 days.
The M&G fund owns 178 UK commercial properties across the retail, industrial and office sectors.
From 6th July: Property fund redemptions: is the end nigh
Earlier today: Aviva is second property fund to suspend trading in wake of Brexit
Yesterday: Standard Life halts UK fund redemptions
