Special Opportunities Reit pulls IPO after missing £250m target

Property fund manager Simon Lee’s attempt to launch the first real estate investment trust in three years has failed with the initial public offering (IPO) of Special Opportunities Reit (SOR) cancelled after failing to raise the minimum £250m.

The decision is a blow to the nascent recovery in investment companies after a widespread derating of share prices in the past two years and with the sector plagued by the failure of the government and City regulator to reform faulty charges disclosure rules before the election.

The prospects for the flotation appeared to look good. Lee (below), a high-profile manager of the former LXi Reit, had secured the support of a heavyweight board chaired by Harry Hyman, founder of Primary Health Properties (PHP); and attracted up to  £119m from cornerstone investors led by US credit specialist GoldenTree Asset Management.