The M&G Property Portfolio and its feeder fund are to remain suspended until further notice, the firm has announced in an update to investors.
The funds were first suspended on 4 December 2019, following "unusually high and sustained outflows", which the firm attributed to "Brexit-related political uncertainty and ongoing structural shifts in the UK retail sector".
The decision to extend the suspension has been made by the authorised corporate director (ACD), M&G Securities, "in the interests of protecting the fund's investors".
Since the end of November, the fund has raised £137m to increase the cash position of the fund, with £70.4m already exchanged or completed, while £67.2m remains under offer "or in solicitors' hands", M&G said.
At the time of the fund's suspension in December, Ryan Hughes, head of active portfolios at AJ Bell, said that M&G would need to sell enough property to "raise a new cash buffer, potentially around 20%".
He noted this figure would require M&G to sell around £500m of property, a target they have raised nearly one-third of with today's news.
M&G has stated that "once cash levels have been sufficiently restored, the fund's ACD will re-open the fund for dealing".