Britainâ€™s commercial property market was dealt a body blow yesterday as the Â£2 billion flotation of Vector Hospitality was pulled at the eleventh hour.
Prospective investors worldwide shunned Vector â€” which was to be Britainâ€™s largest property flotation this year â€” over fears that property prices are set to go into reverse.
This on the day that Bank of Ireland Private Banking bought 50% of the New Mersey Retail Park in the UK for â‚¬309m.
Has someone got it badly wrong?
from the figures there it would seem someone has. not sure if that company specialises in commercial property however
Vector, while specialising in Hotels were looking to list as a real estate investment trust on the London Stock Exchange. They have now postponed it until further notice even though they cut back the float price by Â£460 million the day before to force it thru.
Sources close to the process said yesterday: â€œIt is to do with market conditions. The market has softened and it is fair to say that the property market has been softening for the whole period of the marketing. All that added up to a price the principals were not happy with.â€