A Japanese real estate investor has become the latest casualty of equity market volatility during the coronavirus pandemic, cancelling a fund raising that it said had become “unfeasible”.
Japan Real Estate Investment Corporation had planned to raise up to ¥20bn (£144m) through a stock issuance in a deal announced earlier in the year.
But the company is pulling the transaction “because of the high volatility in the equity market posed by the spread of Covid‐19”. The value of the company’s shares is down by about a fifth so far this year.
The corporation had planned to use the money as part-payment for properties it bought during March and April.
It has now said that the vacancy rate across its portfolio will rise in the coming quarters as finding new tenants becomes tougher during the pandemic.
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