Aviva property fund suspension to last up to 8 months

The firm informed investors in a note sent out yesterday that explained that the time would be needed to sell-off some of its commercial property portfolio.

The note explained: “It is our intention to re-open the trust for dealing as soon as we can. At the present time we are unable to say when the suspension of dealing in the trust will be lifted as the sale of commercial properties, which is required to increase the amount of cash held by the trust, can take considerable time.

“In order to lift the suspension we need to ensure that we can meet any requests to sell, buy, switch or transfer units which have been held by us during the suspension period. We are committed to ensuring the trust has a sustainable liquidity position before we allow dealing to resume in order to protect the interests of all investors.”

Aviva is the first among the six fund groups with suspended property funds to issue a timing on the possible re-opening of the fund.

The asset manager stopped dealing in the fund on 5 July, following Standard Life Investments’ move.

At the time, the firm said “extraordinary market circumstances” led to “a lack of immediate liquidity” in the trust.