Janus Henderson UK Property PAIF and its associated feeder fund have been suspended since 3 March 2022 and the managers hope to wind up the funds by the end of April.
The decision was reached by the board of Henderson Investment Fund as "detailed discussions" are currently underway to sell the entire physical property portfolio held by the fund.
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"Various factors" have led to this move, including the "ongoing uncertainty" over the future of open-ended property funds as the Financial Conduct Authority looks set to impose mandatory notice periods for redemptions.
These developments have "reduced assets under management materially to the point of challenging the portfolio's future shape and quality, along with expected returns to investors".
Last week, it was reported that Nuveen had hired CBRE to independently value the assets in the fund.
Head of UK retail Simon Hillenbrand said: "Having researched a number of options, we believe the best solution is to promptly execute the sale of all of the Janus Henderson UK Property PAIF's property assets to a single buyer.
"The net proceeds will then be distributed to investors according to their holdings in the PAIF and its Feeder Fund. While we cannot currently provide a firm completion date, we are optimistic that a sale could be finalised towards the end of March/early April.
"Proceeds should be able to be returned to investors by the end of April. We believe it is in the best interests of investors in the fund that we take steps now to secure the best outcome for them."