M&G has extended the suspension to dealing in its £2.5 billion Property Portfolio fund, which blocked investors from withdrawing their cash last month.
The fund group said it had raised £70 million after completing the sale of the Ravenside Retail Park in Edmonton and exchange contracts on the disposal of an office block in Staines. A further £67 million is in the pipeline from properties ‘either under offer or in solicitors’ hands’, the fund group said.
‘The immediate priority is to raise cash levels in a controlled manner,’ the fund group said in an update to investors. ‘The fund managers and associated teams are working hard to increase the fund’s cash position.’
The total £138 million of sales would more than double the cash level in the fund, which stood at 4.8% of the fund at the end of November, or around £120 million.
But that would still be well below the heavy holdings of a number of rival property funds, of which some have more than a quarter of their assets in cash.
The Ravenside Retail Park sale will meanwhile chip away at the fund’s large weighting to the under-pressure retail sector, which amounted to 34% of the fund’s assets at the end of November, higher than that of most rivals.
M&G was forced to suspend dealing last month after suffering nearly £1 billion of withdrawals in the space of 12 months. The fund fell 8% over the last year and is kept off the bottom of the Investment Association’s UK Direct Property sector only by the Aberdeen UK Property fund.
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