The initial public offering of the Brandeaux Student Accommodation fund has been shelved owing to ‘adverse public market conditions’.
Brandeaux Student Accommodation was suspended in July 2013, along with the rest of Brandeaux’s range following higher redemption requests and problems with market liquidity.
Last month its directors unveiled plans to float the open-ended fund as a real estate investment trust, which would have raised money to repay investors who wanted to exit the portfolio. The fund would also have been acquired by Brandeaux subsidiary Liberty Living and rebranded under this name.
However, a stock exchange announcement last week said: “Brandeaux Student Accommodation Fund (Sterling) Limited, the UK’s third largest owner and operator of private purpose-built student accommodation, has decided not to proceed with an initial public offering of Liberty Living plc at this time.
“This decision has been reached due to adverse public market conditions and despite a positive response to the company and its underlying portfolio from prospective investors.”
An announcement says the fund’s operations will be unaffected by the decision not to proceed with the IPO.
“The management team will continue to focus on driving value on behalf of the existing investors in the fund and the fund will continue to consider all options for creating liquidity for its shareholders,” it adds.
Murphy Wealth partner Adrian Murphy says: ”The lack of liquidity in these investments makes it very difficult to hold as part of a client’s portfolio and it is something we steer clear of. The level of risk involved makes you wary of what might happen, and this situation highlights the problems that can occur.”