// M&G puts a temporary suspension on shares of its £2.5bn M&G Property Portfolio fund
// Nearly £1bn has been withdrawn by investors from the fund over the last year
Investment firm M&G has temporarily suspended the shares of its £2.5 billion property portfolio fund.
M&G owns shopping centres such as Fremlin Walk in Maidstone, Kent, the Gracechurch Centre in Sutton Coldfield and the Bridgend Designer Outlet in Wales.
Nearly £1 billion has been withdrawn by investors from the fund over the last year.
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M&G admitted it had been unable to sell commercial property fast enough to fund the rush for the door by shareholders.
The suspension is expected to give the firm time to sell property to raise cash to repay investors.
While the fund is suspended, M&G will cut the fees it charges to manage the fund.
“In recent months, unusually high and sustained outflows from the M&G property portfolio have coincided with a period where continued Brexit-related political uncertainty and ongoing structural shifts in the UK retail sector have made it difficult for us to sell commercial property,” M&G said in a statement.
“Given these circumstances, we have now reached a point where M&G believes it will best protect the interests of the fund’s customers by applying a temporary suspension in dealing.”
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