Irish Life sets notice period for withdrawals from €500m property fund

Irish Life said: "Our long-term property outlook is favourable and unchanged. We continue to see property as an important part of people’s pension and investment portfolios."

Analysts have been keeping a close eye on commercial property markets after central banks started to hike interest rates aggressively last year. File picture

Irish Life will stop investors for a temporary period from taking money out from a €500m commercial property fund, a sign that global interest rate increases are weighing on the commercial property market. 

The company said it has imposed a notice period of six months after investors increased withdrawals in recent times from its Irish Property Fund, which Irish Life manages on behalf of its clients.  

"This decision has been taken due to the recent increase in the level of customer withdrawals from this fund," Irish Life said. "The notice period allows time to make any property sales as required to pay future withdrawals, in a way that is fair to all of our Irish Property Fund customers. Irish Life will contact customers to tell them about the notice period," the company said. 

Irish Life’s Exempt Property Fund, which is its biggest pension property fund with €1.7bn in assets, is not affected. Irish Life said that despite the move it hadn't changed its outlook on the commercial property market as an investment asset. 

"Our long-term property outlook is favourable and unchanged. We continue to see property as an important part of people’s pension and investment portfolios," it said. 

Analysts have been keeping a close eye on commercial property markets after central banks started to hike interest rates aggressively last year.