M&G will review the suspension every 28 days.
The firm said investor redemptions in the fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum.
Redemptions have reached a point where M&G believes the suspension is the best way to protect the interests of the funds’ investors.
According to M&G, the move will allow the fund manager time to raise cash levels in a controlled manner, ensuring that any asset disposals are achieved at reasonable values.
The decision was taken in agreement with the fund’s depositary and the Financial Conduct Authority has been informed.
Orders placed after 12pm on 4th July 2016 will not be processed until the suspension is lifted.
The M&G Property Portfolio is a diversified fund which invests in 178 UK commercial properties across retail, industrial and office sectors on behalf of UK retail investors. The fund has no borrowings.