M7 Cancels Its Real Estate Investment Trust IPO

Photo via M7 Real Estate

M7 Real Estate is a firm which invests in commercial property across Europe.The firm has cancelled the planned float of the company’s new investment trust on the London Stock Exchange today.

The M7 Multi-Let Real Estate Investment Trust (Reit) was set to invest in commercial property in the United Kingdom. It aimed to raise £300m in a stock market listing which would have made it the biggest Reit IPO in 2017.

The deadline for the share offer was already extended by M7, and it seems that it could not get enough investor interest to achieve its target amount.

Despite this, Richard Croft, the chief executive of M7, stated: “Throughout the IPO process we received positive feedback and a strong level of investment indications from prospective investors.”

Croft added that some investors had expressed an interest in obtaining the initial portfolio, which included properties that were privately held in other funds. M7 has since accepted the said funding and additional sums to pursue the pipeline of opportunities it had created.

The interest of the investors, “combined with the current market conditions and the volume of recent issuances focusing on UK real estate, led the board to conclude that the initial portfolio and pipeline would be better funded privately over the near to medium term,” stated Croft.

M7 said that it might “revisit” a potential listing over the coming 12 months.

In better news for M7, the company announced that it had closed M7 European Real Estate Investment Partners IV, its largest-ever European investment fund, with over €400m (£356m) of commitments, making it the largest of the firm to date.

The fund will have an investment capacity with a total amount of more than €800m, including leverage.