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M&G extends £2.5bn retail property fund suspension

Investment firm M&G, which owns shopping centres across the country, has said it will continue the temporary suspension of its £2.5bn M&G Property Portfolio fund “until further notice”. 

It said the decision was taken by the fund’s authorised corporate director (ACD) in the interest of protecting its investors. The Financial Conduct Authority has also been informed.

M&G is required to review the status of the fund each month, and said in a statement: “The immediate priority is to raise cash levels in a controlled manner. The fund managers and associated teams are working hard to increase the Fund’s cash position and since the end of November, they have exchanged or completed on £70.4m of assets and a further £67.2m is either under offer or in solicitors’ hands. Once cash levels have been sufficiently restored, the Fund’s ACD will re-open the Fund for dealing.

“Naturally, the Fund is still being actively managed and M&G is regularly communicating with clients, customers and other stakeholders. Whilst under continuous review by M&G and the Depositary, the ACD will formally report on the status of the suspension on a monthly basis and clients and customers will be notified in advance of reopening the Fund.

”The Fund’s assets under management as at 30 November 2019 is £2.5bn, with a cash position of 4.8%.”

Meanwhile, M&G has sold Ravenside Retail Park in Edmonton, north London, to an unnamed buyer for £51.4m.

The fund’s biggest holdings include shopping centres such as Fremlin Walk in Maidstone, Kent, the Gracechurch Centre in Sutton Coldfield, and the Bridgend Designer Outlet in Wales. 

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