Standard Life Investments has shelved plans to launch its Property Income investment company because...
Standard Life Investments has shelved plans to launch its Property Income investment company because of a lack of interest amid weak market sentiment.
The group aimed to raise a minimum of £160m but fell short of that amount and will return all monies raised to the subscribers immediately. The fund would have been a close-ended company listed on the London Stock Exchange.
Andrew Jackson, investment director of property research at Standard Life, said a re-launch would be considered once market conditions improved.
Jackson said the monies raised were in excess of £100m and the group had been on track to raise more, but two cornerstone investors based in the Middle East reversed their decision to invest at a late stage in the fundraising process.
Reducing the size of the fund was ruled out, as a smaller portfolio would not provide the diversity the group had planned, Jackson added.
Scottish Widows Investment Partnership (Swip) has been more successful with its property vehicle, launching a second share issue on 21 February and receiving the minimum subscription amount of £40m in one week.
When initially launched in February 2002, the UK Balanced Property Trust raised around £150m.
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