British Property Trust Cancels London IPO Amid Market Strains
Real Estate

British Property Trust Cancels London IPO Amid Market Strains

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.

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.

Next Story
Infrastructure Transport

Tiwari Hata Wall Demolished for 3.5-km Heritage Corridor Project

The demolition of the boundary wall of the Tiwari Hata complex began late Tuesday night as part of the 3.5-kilometre Heritage Corridor project, a key initiative led by chief minister Yogi Adityanath to boost urban development in Gorakhpur. The Tiwari Hata property, once home to late politician Harishankar Tiwari, has recently gained renewed attention after the arrest of Samajwadi Party leader Vinay Shankar Tiwari in a money laundering case. PWD executive engineer AK Singh said demolition is underway in areas marked by the Public Works Department as part of the road widening effort. Some resi..

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?