Special Opportunities REIT has pulled its IPO after failing to achieve its minimum fundraising target, nixing the first REIT to list on the London Stock Exchange in three years.
The listing would also have been the biggest investment trust IPO of the year. The business sought to buy “high-quality properties” sold by distressed and “highly motivated” sellers, with targeted sectors including student accommodation, industrial, data centres, retail parks and budget hotels.
The REIT said despite “strong” investor demand, it fell short of the minimum £250m required to proceed with its float. Two weeks ago, it set out plans to raise £500m.
At the time, it secured commitments from three cornerstone investors, totalling between £104m and £119m.
The management team will instead acquire assets from the pipeline using private capital.
“Having considered their options, the board did not believe it would be in the best interests of investors to reduce the minimum fundraise below £250m given the nature of the market opportunity and pipeline,” the REIT said in a statement.
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