The UK investment house has frozen UK property fund withdrawals for longer.

London-listed Aberdeen Asset Management suspended trading in its £3.4 billlion ($4.4 billion) UK Property fund and Property Feeder unit trust for another three days, after initially introducing a 24-hour freeze until midday on 7 July.

On Wednesday, the company said the temporary suspension would give shareholders who have placed trades the option to withdraw, admitting that investors may well reconsider selling given that the dealing price was down on Thursday by 17 per cent. The extension to noon on Monday, 11 July‎ was in response to investors' requests for more time to consider whether to withdraw their redemptions.

“Feedback regarding our approach has been positive. Investors appreciate that we are continuing to provide liquidity, albeit at a discounted price which reflects current market conditions and the fact that short-term trading in the property market has relatively penal consequences," said Martin Gilbert, chief executive of Aberdeen.

Aberdeen noted that the portfolio was positioned defensively prior to the referendum with “one of the highest levels of liquidity of all similar funds”. It had sold all quoted property companies in the week before the referendum, holding this as cash. The direct property portfolio invests in 79 UK properties across retail, industrial, office and other sectors.

“Reducing the share price of the fund reflects the changing market conditions over the past week or so and uncertainty around prices in the property market; sellers requiring liquidity are having to market properties at sometimes significant discounts to their recent valuations,” said Aberdeen's chief executive, Martin Gilbert.

“Aberdeen’s property fund continues to hold a good level of cash, which permits us to offer these options to investors, but it is imperative that we protect remaining holders by fairly reflecting the impact of short-term trading on values provided to redeeming shareholders. The property market itself may take some time to find its level but we believe that the same factors that made property a good long-term investment yesterday remain true today.”

Market uncertainties triggered by last month's Brexit vote have pushed a number of investment managers to suspend trading in their property portfolios. This week's suspensions include those by Standard Life Investments, Aviva Investors, M&G and Columbia Threadneedle Investments.