Tuesday 16 October 2018

York Capital pulls €250m Core Industrial Reit IPO

Stock photo: Reuters
Stock photo: Reuters
Donal O'Donovan

Donal O'Donovan

US hedge fund York Capital has pulled a planned €250m initial public offering (IPO) of its Core Industrial Reit blaming market conditions.

In a statement the promoters said they'd made the decision "despite encouraging institutional support".

Core would have been the fourth stock market listed Irish real estate investment trust (Reit), but was focused on only industrial property. Core has 106 industrial assets and around 167 acres of land, primarily in and around Dublin.

The portfolio was put together by York Capital, advised by Daniel Donovan and William Redmond following the crash.

Non-prime industrial assets were always likely to be a tougher sell for investors than the office and residential properties that make up the other Irish Reits.

Europe is on course for its busiest start to the year for IPOs since 2015 but increasing volatility and a few IPO flops have made investors more discerning of where they put their cash.

This growing price sensitivity follows the burst of financial market volatility in January and February in which major stock markets - including the Euro STOXX 50 - fell 10pc in just days, fuelled by inflation fears and expectations that interest rates could rise more quickly.

Global investors cut their equity exposure in the wake of that volatility. (Additional reporting Reuters)

Irish Independent

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