Brandeaux announced the flotation last month with the intention of “creat[ing] liquidity” for shareholders wanting to redeem investments from its suspended British Virgin Island-domiciled Student Accommodation Fund.
But late last week a stock market announcement from Liberty Living said the IPO had been withdrawn because of “adverse public market conditions”.
It added that the withdrawal came despite a “positive response” to the portfolio from initial investors, and said it would continue to “consider all options” in creating liquidity for shareholders.
The fund’s directors had initially hoped that floating the £1.1bn student property portfolio as a real estate investment trust, by transferring its ownership to Liberty Living, would raise cash to pay shareholders who have been trapped since the fund was closed last July because of “liquidity issues”.
'Uncertainty'
Explaining the fund’s suspension in a note to investors at the time, Brandeaux said there was a “great deal of uncertainty” in the student accommodation market, adding that this had created a “considerable overhang” which accounted for over 20% of all privately owned UK purpose built student accommodation property.
The funds remain closed to new investments.
In April, it was revealed that Baker Tilly may face claims from investors who were sold the Brandeaux products by advisers working for RSM Tenon, which Baker Tilly later acquired.
