August, traditionally a quiet month, saw the continuation of asset disposals on the M&G Property Portfolio. The temporary suspension is enabling the fund managers to conduct sales activity in conditions akin to normal trading: a portfolio of assets have been identified for sale and are currently being marketed and bid for. By 2 September, 15 assets had been sold with a further three exchanged and 14 placed under offer.
M&G believe the decision to temporarily suspend was the best way to protect the interests of all the Fund's shareholders. Preservation of value was a key determinant in suspending the Fund and, aggregating all agreed sales and sold assets together, the values achieved have been at reasonable levels relative to pre Brexit valuations.
A further consideration in the raising of cash has been to sell assets in areas of the market forecast to be performance laggards in the medium term. The rationale being to have a portfolio fit for purpose on lifting the suspension so as not to discriminate against those investors who choose to remain in the fund.
M&G aims to reopen trading in the Fund as soon as practically possible - once conditions in the commercial property market become more normal and the fund manager has raised sufficient cash in the portfolio.
The figures below provide information regarding asset sales that have taken place during the period 24 June to 2 September 2016
M&G Property Portfolio completed Sales since 24 June - 2 September