Urban Exposure has shelved plans to list its closed-end real estate arm.
Part of the Urban Exposure Group, Urban Exposure Real Estate specialises in residential development finance in the UK.
The division was set to raise 拢500m (鈧�630m) through an initial public offering and received the backing of US hedge fund, EJF Capital. The Virginia-based firm had committed 拢75m to the IPO as a cornerstone investor in the fund, which had targeted returns of 14%.
However, Urban Exposure said the plan to list had been dropped due to the 鈥減revailing IPO backdrop鈥�.
The group鈥檚 management said it had received an 鈥渆ncouraging response from prospective investors鈥�, with discussions ongoing to instead privately fund the group, which has a 拢3bn pipeline of UK residential development finance opportunities.
鈥淭he Group is well placed to build on the strong track record it has already established within the residential-led real estate development loans market,鈥� it said. 鈥淢anagement will continue to deploy this pipeline via the current, private funding arrangements already in place.鈥�
Urban Exposure, which has previously partnered Starwood Capital, LaSalle Investment Management, Barclays and RBS, last month said it has 拢476m of commitments on development finance on residential-led real estate projects in London and southeast. A lender since 2009, it has a current pipeline in residential lending opportunities of 拢3bn, of which 拢858m is under negotiation.
