Writing to investors, M&G confirmed the regulatory proceedings related to the termination of the fund have been completed, with the wind-up set to commence on 29 December 2023.
The fund is being closed due to the dwindling popularity of property vehicles, according to M&G, which noted the ongoing withdrawals are "likely to continue" and may "accelerate in the future".
M&G suspends open-ended UK property fund ahead of closure
As the £557m fund shrinks further, "it becomes necessary to sell some of its larger properties and buy smaller ones", which will incur "high transaction costs".
Investors can expect their first payment "on or around" 8 February 2024, with this distribution due "no later than" 13 February.
The firm intends to make quarterly distributions from the fund but notes this is reliant on the successful sale of assets above a certain threshold, currently predicted to range between £40m and £50m.
Based on the "current market environment", the wind-up of the vehicle is expected to take roughly 18 months, although M&G noted this prediction relates to "the majority of the portfolio" and does not guarantee this timeframe.
Industry divided on future of property funds following M&G closure
Investors who hold the fund directly in the M&G ISA or M&G Junior ISA will have their capital directly invested in the M&G Short Dated Corporate Bond fund, if they do not specify otherwise, while investors who hold the vehicle through other means will receive cash payments as default.
Administrative and publishing charges incurred in the closure of the fund will be borne by M&G, while transaction and legal costs will be drawn from the fund. Property operating expenses, detailed as the property expense ratio, will continue to be charged during the wind-up.