A British property trust has canceled its planned flotation on the London Stock Exchange after failing to meet the minimum demand threshold of ?250 million ($319 million). Special Opportunities REIT announced that it would instead pursue property acquisitions using private capital, deeming a reduced minimum not in the best interest of investors.

Initially, the trust aimed to raise ?500 million, hoping to attract investors confident in a recovery within the British property sector. The sector has struggled with falling property values, driven by increased borrowing costs and reduced demand for office spaces post-pandemic.

This decision marks another setback for London's struggling IPO market, which has seen a slower recovery in listing activity compared to other global markets. In a rare positive note, computer maker Raspberry Pi saw its shares surge upon debuting online retailer Shein is contemplating a UK float despite facing criticism over its fast-fashion practices.

Compounding the grim outlook, official data released showed no growth in the broader UK economy for April.

In related news, Great Portland Estates (GPE) has successfully completed a ?350 million rights issue aimed at funding new property acquisitions. Despite the 97% uptake of the rights issue, nearly 5 million shares remained unsold. The company also disclosed that some investors might not be able to honor their commitments for an additional 6 million shares due to jurisdictional restrictions.

GPE shares remained flat in early trading on Wednesday. The company stated that Bank of America, Deutsche Numis, and JPMorgan Cazenove acted as joint bookrunners for the rights issue, with Santander serving as co-lead manager. The bookrunners are now working to find new subscribers for the remaining shares.