M&G has received regulatory approval to terminate the funds.

The fund manager announced on 19 October that it would close the Property Portfolio fund due to, “declining interest in open-ended daily dealing property strategies from UK retail investors.”

The fund manager said the move was in the “best interests” of investors.

M&G suspended dealing in the funds in October and wrote to clients explaining its plans to wind up the funds.

The fund, along with several other property funds run by competitors, was suspended in 2019 after a wave of redemptions hit the property fund sector. 

A number of property funds have struggled with liquidity in recent years and been forced to suspend trading for periods. The FCA has also questioned the liquidity of property funds which rely on long term returns.

M&G suspended the fund on 4 December 2019 and it remained suspended for 18 months. At the time the fund manager blamed Brexit-related uncertainty and ongoing structural shifts in the UK retail sector.

The fund recently had £565m invested, about a quarter of the £2bn invested in the fund in 2019 when it was last frozen.

M&G said the Property Portfolio fund had seen persistent outflows over several years.

The fund will sell off assets, a process expected to take about 18 months to complete. All proceeds will be returned to investors minus charges but M&G said that in recognition of the closure it had reduced the Annual Charge by 30% as of 19 October and abolished it entirely on cash. 

• Advisers can contact the the M&G Financial Adviser Helpline team on 0800 328 3191.