Host Capital has announced the immediate suspension and proposed closure of its £18.1m UK Student Accommodation fund, subject to regulatory approval.
The PAIF, launched in November 2012, was suspended "with immediate effect" on 1 November.
Host Capital were unavailable for comment at the time of writing.
According to FE, the fund had assets under management of £42.8m in November 2013 but had fallen to a low of £15m in August 2016.
The closure follows a particularly volatile time for the UK property sector, which saw a number of funds adjust their pricing and suspend trading following valuation concerns in the wake of June's Brexit vote.
At the time of writing, the only property fund to remain suspended is the Aviva Investors Property Trust.
According to FE, the UK Student Accommodation fund has returned 8.9% over the last three years, versus an IA Property sector average of 27.1%. It has also underperformed the sector over a short-term basis, returning 1.9% versus a sector average of 5.2% over six months.