M&G reopens UK property fund frozen since 2019

ICG Longbow Senior Secured UK Property Debt Investments

20/04/2021 13:31

LONDON, April 20 (Reuters) - M&G  MNG.L  will reopen its two
billion pound ($2.80 billion) UK property fund, which it
suspended in Dec 2019, after selling 38 properties in the
portfolio, the British asset manager said on Tuesday.
    M&G froze the fund due to problems in the UK retail property
sector and uncertainty over Brexit, it said at the time.
    While many other similar funds froze in March 2020 as a
result of the coronavirus pandemic, most have now reopened,
industry sources say.
    The M&G Property Portfolio and its feeder fund will reopen
on May 10 and the firm is waiving 30% of the fund's annual
charge during the suspension because of the inconvenience to
investors, it said in a statement.
    M&G said the fund has sold real estate assets totalling 700
million pounds since the suspension, with a further 250 million
pounds exchanged or under offer.
    The assets were sold at a combined -0.1% discount to their
net asset value and cash in the fund now stands at 33.2%, M&G
said.
    Funds investing in illiquid assets like property which offer
the ability to take money out daily sometimes have to suspend
trading to allow time to sell assets to meet redemption
requests.
    The Financial Conduct Authority has proposed that property
funds require a notice period of three to six months from the
request for a redemption to the return of cash.

($1 = 0.7152 pounds)

 (Reporting by Carolyn Cohn, editing by Louise Heavens)
 ((carolyn.cohn@thomsonreuters.com; 44 207 513 4391;))