Urban Exposure Group is in talks with a number of investors to provide private funding for its residential lending business after calling off its IPO.
The “ongoing discussions” are expected to include talks with US hedge fund EJF Capital. EJF had committed £75m as a cornerstone investor in the proposed £500m flotation of residential development lender Urban Exposure Real Estate.
UERE plans to continue with its £3bn pipeline of deals using the current private funding it has in place “with the benefit of any further funding agreed as a result of this process”.
The group called off the listing on 5 August, citing the “prevailing IPO backdrop” as the reason behind the decision.
A number of flotations, including Clipstone’s proposed £150m logistics and warehouse vehicle, have been pulled recently as investor fatigue grows and interest tails off with the onset of summer.
However, it is understood that Round Hill Capital is still considering an IPO of its Nido Student accommodation group as one of a number of financing options.
The group has done some exploratory work with investors on a flotation of the three-strong fund, which may come to fruition in the autumn.
Bridget.O’Connell@estatesgazette.com
