New Star halts trading on property portfolio

Trading in the New Star International Property fund will not resume until at least after the new year, says Stuart Webster, the head of global property at New Star.

The group uspended dealing in the GBP 475m fund last week after some large institutional clients redeemed their holdings. Webster says he only expects about another GBP 1.5m to redeem when the fund reopens for investment.

We took the decision to suspend dealing to restore sufficient liquidity to the fund for it to meet redemptions once it reopens,’ says Webster.

At launch in Jume 2007 the fund took in assets of GBP 202m, which was the largest retail launch in history.