Whitewood’s £125m debt investment vehicle fails to list

The Benelux-focused commercial real estate strategy is exploring other capital-raising options, writes Private Debt Investor’s Rachel McGovern.

Real estate investor the Whitewood Group, has pulled its £125m initial public offering (IPO) for debt investment vehicle, Whitewood REFF. The Benelux-focused commercial real estate strategy is still seeking investment from alternative sources rather than the planned Guernsey-registered listed investment trust, said a source familiar with the situation.

The potential IPO was due to complete on 19 March, according to documents published by Whitewood, but was always one of a number of capital-raising options, the source added.

A spokesperson for Whitewood had not responded to a request for comment by the time of publication.

The firm published an intention to list on the London Stock Exchange in early March. The document described a strategy focused on loans secured against Benelux office units.

Whitewood REFF is an affiliate of private real estate investor the Whitewood Group and the listed vehicle was set to be advised by Whitewood Capital REIM. The firm was offering 125 million ordinary shares at £1 each, as reported by PDI.

The vehicle’s return target was an annualised net dividend yield of 5.75% and a total return over the longer-term of between 10-15%, according to documents released by Whitewood.

Whitewood opted to target Dutch and Belgian real estate loans as refinancing and new money financing continue to be difficult to access in those markets, according to the documents. The firm also cited the large anticipated sales of non-performing real estate loans.