Standard Life Investments (SLI) will lift the trading suspension on its £2.5bn UK Real Estate PAIF on 17 October at midday, saying the UK commercial real estate market has sufficiently stabilised following June's Brexit vote.
In a letter to investors, director Lynn Scott said the company implemented a controlled and structured asset disposal programme following the fund's suspension on 4 July in order to raise sufficient liquidity to meet future redemptions.
"We believe the commercial and real estate market has stabilised and that the adequate level of liquidity achieved will allow the suspension to be lifted on 17 October 2016," he said.
"We very much appreciate your patience during this suspension which we have tried to keep to a minimum while best protecting the interests of all investors."
Dealing in the fund and feeder funds and purchases and redemptions of shares will return to normal on 17 October, with the first valuation point being 12 noon that day.
Dealing instructions to purchase or redeem shares will be accepted from 28 September in a written or faxed format only, and will be processed at the valuation point on 17 October.
"The fund and feeder funds have continued to be managed actively during the period of suspension. During this time the commercial real estate market has settled down with better visibility around property valuations," said Scott.
"The economic data following the referendum has not been as negative as anticipated, although the heightened uncertainty has had some impact on overall transactional activity and this is likely to continue. Significant monetary support and the rapid formation of a workable government have helped support the wider economy.
Conditions are improving for the open-ended property sector after a raft of suspensions following the Brexit vote.
Columbia Threadneedle today (26 September) lifted the trading suspension on its UK Property Authorised Investment Fund (PAIF) and its feeder fund, the UK Property Authorised Trust.
Meanwhile, M&G said last week it hopes to re-open its suspended £4.4bn Property Portfolio next month, while Henderson announced it would lift the suspension of trading on 14 October on its £3.4bn UK Property PAIF and associated feeder funds following its most recent dealing review.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "The UK property fund sector appears to be returning to some semblance of normality, though there are still some big funds out there that are yet to open their gates.
"The big freeze that beset property funds over the summer could well recur if the sector sees more large withdrawals, so investors should make sure they are willing to accept this ongoing risk, and to hold the funds for the long term.
"One nagging concern for investors in the sector, beyond the prospect of future trading suspensions, is the high level of cash these funds now hold to provide daily liquidity for shareholders.
"This is a perfectly sensible strategy for a manager running an open-ended fund to operate, but in today's low interest rate environment it will act as a drag on returns, which is yet another drawback for property fund investors to consider."
Despite many property funds re-opening, Aviva Investors said in July it expects the suspension on its Property Trust to last for at least six to eight months.
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