Standard Life Investments will re-open its property fund in October after disposing of assets during a period of suspension.
After the Brexit vote, several property funds were forced to suspend trading due to a spike in redemption requests, freezing £15-20bn worth of funds.
Standard Life said it would open the fund again on 17 October because the market has stabilised and the fund now has sufficient liquidity to meet any withdrawal requests.
David Paine Head of Real Estate at Standard Life investments said: “In the immediate aftermath of the EU referendum result redemptions from retail investor property funds increased dramatically whilst property transactions reduced significantly.
“During the period of suspension the fund has been able to restore liquidity through an orderly disposal of assets. We are pleased with the progress made and the removal of the Market Value Adjustment, and able to announce the reopening of the fund next month.”
Laith Khalaf, senior analyst at Hargreaves Lansdown, said:
The UK property fund sector appears to be returning to some semblance of normality, though there are still some big funds out there that are yet to open their gates.
The big freeze that beset property funds over the summer could well recur if the sector sees more large withdrawals, so investors should make sure they are willing to accept this ongoing risk, and to hold the funds for the long term.
The news comes after various other property funds that were forced to close in early July said they were now open to investors once again.
Last Friday marked three months since the Brexit vote, and property funds have been some the biggest losers since then.
Source: CityAM