Alternative lender Urban Exposure cancels €627m IPO

Urban Exposure, a non-bank provider of development finance, has become the latest UK company to drop plans for a stock exchange listing.

Urban Exposure, a non-bank provider of development finance, has become the latest UK company to drop plans for a stock exchange listing.

The London-based firm, which specialises in residential property development finance, said it has cancelled the planned £500 mln (€627 mln) IPO of its fund ‘due to the prevailing IPO backdrop’.

The move follows a number of other IPO cancellations on the London Stock Exchange in recent weeks by companies blaming investor fatigue and the summer slowdown.

Industrial landlord Clipstone pulled its £140 mln IPO plans last week due to the summer lull, with student accommodation fund manager Brandeaux also cancelling its plans to float a £400 mln fund last month citing 'adverse public market conditions'.

In a statement, Urban Exposure said it had received ‘an encouraging response' from prospective investors for its IPO and that it was in ‘ongoing discussions with a number of them to provide private funding to the wider Urban Exposure group’.

Urban Exposure has been operating since 2009 and in the last 12 months has committed £476 mln of development finance on behalf of its joint venture partners to residential-led real estate projects in the UK. The UE Group currently has a pipeline of residential development finance opportunities valued at over £3 bn.

Urban Exposure Real Estate invests in secured residential-led real estate development project loans, with a primary focus on projects in London and South East England. It aims to generate a gross internal blended rate of return across the portfolio of 1% and seeks to achieve a blended portfolio loan to estimated gross development value ratio of 60%.

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