Standard Life stops investors selling out of UK property fund
Move a sign Brexit shock is filtering into property sector
Last week, Standard Life marked down the value of the buildings its funds own by 5 per cent. Photograph: Getty Images
The £2.9 billion (€3.45 billion) commercial property fund will need to sell real estate to raise cash before any money can be redeemed. It is the UK’s third-largest open-ended property fund for retail investors.
Last week, Standard Life marked down the value of the buildings its funds own by 5 per cent. The UK’s two largest open-ended property funds, run by Henderson and M&G Investments, did the same. The move by the insurance giant is one of the most concrete signs of the Brexit shock filtering from the financial markets into Britain’s property sector.
Investors in the fund will be unable to redeem their holding for at least 28 days. The asset manager said the suspension will end “as soon as practicable”, and will be reviewed every 28 days. – (Copyright The Financial Times Limited 2016)