Europe’s largest proposed real estate IPO of 2016 has been cancelled. The process to list German office company OfficeFirst, due to be spun off by hedge fund-owned IVG, was pulled due to “significant deterioration in the market environment in the real estate sector”. It blamed fears of a base rate hike and monetary policy changes in Europe and US. OfficeFirst’s €3.3bn (£2.8bn) portfolio includes the 1.5m sq ft The Squaire office and hotel complex at Frankfurt Airport (pictured) – a development that saw cost overruns of around €350m.
Europe’s largest proposed real estate IPO of 2016 has been cancelled. The process to list German office company OfficeFirst, due to be spun off by hedge fund-owned IVG, was pulled due to “significant deterioration in the market environment in the real estate sector”. It blamed fears of a base rate hike and monetary policy changes in Europe and US. OfficeFirst’s €3.3bn (£2.8bn) portfolio includes the 1.5m sq ft The Squaire office and hotel complex at Frankfurt Airport (pictured) – a development that saw cost overruns of around €350m.
