There was disappointment for the directors of Special Opportunities REIT as the planned Initial Public Offering (IPO) has had to be aborted after failing to gather enough equity.
The company’s board said that while it would not be able to go ahead with its London Stock Exchange float because it failed to garner the minimum £250 mln (€296 mln) required, it would go ahead and use available resources to buy assets.
For the IPO, Special Opportunities REIT had lined up commitments from multiple high-quality institutions in addition to cornerstone investors.
But it admitted: ‘Although investor demand has been strong, it fell short of the £250 mln minimum fundraise required for the IPO to proceed. Having considered their options, the board did not believe it would be in the best interests of investors to reduce the minimum fundraise below £250 mln given the nature of the market opportunity and pipeline.’
The management team will now acquire assets from the pipeline using private capital in line with the company's proposed strategy.
