Plans to float a supported housing REIT have become the latest real estate victim of the chaos on the markets caused by the government’s mini-Budget.
Independent Living REIT had planned to raise at least £150m to target a £500m pipeline. It announced its intention for an IPO on 12 September.
In a statement this morning, the REIT said: “Given current market conditions, the board of directors has decided not to proceed with the initial issue at the current time.”
It was keen to stress that the change of heart was due to the market, and not the REIT’s appeal. “The company has received a broad level of support from a significant number of investors and has been encouraged with the response to the investment proposition,” it added.
All funds already committed by investors will be returned, it said. “The prospectus remains valid and any new timetable agreed would be announced to the market accordingly.”
The REIT targets accommodation designed for adults with learning difficulties, mental health issues or physical disabilities.
It is managed by Atrato Partners, which also runs the £1.5bn Supermarket Income REIT, which listed in 2017 and now forms part of the FTSE 250.
The news of the scrapped IPO follows LXi’s decision earlier this week to cancel plans to buy a £500m portfolio of supermarkets from Sainsbury’s. It too decided the market was too volatile to risk raising the necessary funds.
See also: LXi’s collapsed £500m deal highlights REIT woes
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