(Alliance News) - Special Opportunities REIT PLC on Wednesday said it had to cancel its planned initial public offering on the London Stock Exchange.

The real estate investment trust said that despite "strong" investor demand, it failed to meet the GBP250 million minimum fundraise required for the IPO to proceed.

On May 29, the company had said it targeted a fundraise of GBP500 million, noting commitments from investors GoldenTree Asset Management, TR Property Investment Trust PLC and other Columbia Threadneedle investments funds.

Special Opportunities Chief Executive Officer Simon Lee at the time said the company expected to deliver significant value growth following "highly selective" acquisition of properties and by leveraging the current structural oversupply of UK commercial real estate.

Lee was a co-founder and CEO of LXi REIT Advisors, and co-fund manager of LXi REIT PLC, from the IPO in February 2017 until 2024 when it merged with LondonMetric Property PLC.

Meanwhile, Special Opportunities Chair Harry Hyman is also chair of FTSE 250-listed Primary Health Properties PLC, a real estate investment trust and investors in modern primary healthcare premises.

"The management team will now acquire assets from the pipeline using private capital in line with the company's proposed strategy," Special Opportunities said Wednesday.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.