Continental Europe’s biggest proposed real estate IPO of the year has been postponed over market fears.
OfficeFirst IVG’s €3.3bn (£2.8bn) German office portfolio, which was intended to float on 16 September, was due to be the second listed office specialist in Germany, after Alstria.
However, the company has postponed the IPO on the Frankfurt Stock Exchange planned for this Friday “until further notice”.
OfficeFirst IVG said: “The boards of both companies unanimously reached the decision to take account of the significant deterioration in the market environment in the real estate sector in the past days.”
Fears of a base rate hike and monetary policy changes in Europe and the US were said by the company to be making investors cautious, despite what it described as a positive response to the business model and portfolio.
Michiel Jaski, chairman of the management board and chief executive of OfficeFirst Immobilien AG, said: “The consistently positive response to the company’s business model and portfolio in more than 100 discussions held with investors has once again confirmed our belief in the intrinsic value of the OfficeFirst properties.
“Nonetheless we have to recognise that the market environment has become so much bleaker in the past few days that a fair price would currently be hard to attain.”
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