Standard Life Investments suspends property fund trading

STANDARD Life Investments has suspended trading in its UK property fund after a flurry of investors rushed to withdraw their money following the Brexit vote.

Standard Life Investments has called a halt on property fund trading. Picture: Neil Hanna

The Edinburgh-based firm said investors will not be able to buy or sell units in the fund until further notice, while the managers look to raise cash by selling off some of their portfolio.

It wrote down the value of the fund by five per cent last week, saying the Brexit vote had “negatively impacted” valuations for UK commercial property.

In a statement yesterday evening, Standard Life Investments said: “The suspension was requested to protect the interests of all investors in the fund.”

Experts said Standard Life Investments could be the first in a wave of funds to do the same in the wake of the referendum.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “Property funds are clearly under pressure as a result of the Brexit vote, and we could now see a new wave of investors being unable to liquidate their property funds quickly, which we last witnessed during the financial crisis.”