St James’s Place has suspended dealing in its £825.9m SJP Property unit trust and deferred redemptions in its life and pension funds, citing a drop in demand for UK commercial real estate.
The three funds mainly consist of offices, warehouses and retail parks, while including other types of retail and leisure assets.
The wealth manager said the suspension was a “proactive measure intended to protect the interests of clients”.
It blamed the suspension and deferral on three factors: a fall in demand for UK commercial property; office space remaining vacant post-Covid as employees continue to work from home; and clients increasing their withdrawals and limiting their investments.
Tom Beal, director of investments at St James’s Place, said: “We have taken this step to protect the interests of clients. A combination of factors has led to our decision to suspend dealings in the Property unit trust and defer payments in the pension and life funds.
“This action is also aimed at preventing the challenge of having to sell properties quickly to generate cash. Selling properties under such pressure may lead to the fund manager selling them for less than their actual market value, potentially resulting in financial losses for the fund and its investors.
“During this period of suspension, we will be assessing market conditions and closely monitoring valuations of properties within the fund. We are committed to resuming dealing as soon as we are satisfied that conditions are right.”
The news comes after M&G outlined plans to begin winding down its property portfolio fund last week.
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