Aviva Investors reopens European property fund

Aviva Investors, the asset management arm of the British insurer, has reopened its European Property Fund after barring dealing for more than a year to stem massive outflows near the peak of the global financial crisis.

The 195 million euro ($284 million) fund was temporarily suspended on Nov. 4, 2008, as investors spooked by free falling real estate values moved to take their cash out in droves,triggering risk of a costly firesale.

Since then, sentiment towards property investment has turned and inflows have returned, enabling fund managers to meet redemption requests from cash reserves.

"We've worked hard in a difficult real estate market to bring the fund back to a good liquidity position and are delighted the fund can return to normal trading" Ben Stirling,managing director of Continental Europe Real Estate said in astatement.

Stirling said the outlook for the fund was increasingly positive. He welcomed "clear improvement" in key economic indicators for the Eurozone and said he believed the worst of the falls in European real estate values were over.

"Since suspending dealing in the fund late last year we have carefully managed liquidity levels and the sale of properties ina measured manner to get the best possible price" he said.