L&G Investment Management defers monthly dealing in $4 billion UK property fund

LONDON (Reuters) - Legal & General Investment Management is deferring monthly dealing by institutional clients in its 3.7 billion pounds ($4.17 billion) Managed Property Fund, it said in an emailed statement to Reuters on Thursday.

The investment management unit of the British insurer said trading in all other property funds, retail and institutional, was unaffected.

Open-ended real estate funds across Britain have been battling to meet a surge in requests for investor exits, against an uncertain economic backdrop and sharp rises in interest rates which have challenged the investment case for commercial property.

"Whilst we have always maintained a prudent position on cash management, the exceptional market conditions and the impact of the political turmoil over the past few weeks have now necessitated the implementation of the Managed Property Fund's deferral policy," Michael Barrie, Director of Fund Management for LGIM Real Assets, said.

LGIM said the deferral, in place since Nov. 1, was required to protect the majority of clients wishing to remain as long-term investors and would allow the fund to maintain sufficient working capital and sell assets.

($1 = 0.8879 pounds)

(Reporting By Carolyn Cohn and Sinead Cruise)