Standard Life has become the latest institution to stop investors moving money out of its property funds.
The insurance giant has introduced a lock-in that will mean around 212,000 savers in six commercial property funds, worth £2.7bn, will be unable to cash in investments for up to six months.
Last week the Norwich Union locked in nearly a quarter of a million investors in its property funds.
Standard Life said it had needed to take the action because the credit crisis had meant it was taking longer to sell property.
In a statement it said: “The credit crunch has resulted in considerably fewer buyers of commercial property, which in turn has led to increasing pressure on property fund managers to accept lower prices when selling properties and to properties taking longer to sell.
“Unlike equities, the selling process can be lengthy as the fund manager needs to offer the properties for sale, find prospective buyers, secure the best price for the investor and complete the legal transaction.
“Unless this selling process is controlled, there is a risk that the fund manager will not achieve the best deal for investors in the fund, including those who intend to remain invested over the medium to long term.”
