Standard Life has halted withdrawals on its property funds following the UK’s decision to leave the European Union, stopping all trading as of July 4, 11.00am GMT.
The firm’s core property fund, Standard Life UK Real Estate Fund, is worth approximately £2.9bn and predominately invests in commercial property.
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Standard Life will review the decision every 28 days, with the suspension staying in place until it is "practicable" to lift it.
In a statement, Standard Life said the decision followed an increase in redemption requests from investors. "The suspension was requested to protect the interests of all investors in the fund and to avoid compromising investment returns from the range, mix and quality of assets within the portfolio," the company said.
Standard Life suggested that the liquidity of the assets in the fund had prompted the suspension:
"The selling process for real estate can be lengthy as the fund manager needs to offer assets for sale, find prospective buyers, secure the best price and complete the legal transaction. Unless this selling process is controlled, there is a risk that the fund manager will not achieve the best deal for investors in the fund, including those who intend to remain invested over the medium to long term."
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