Britain’s commercial property market was dealt a body blow yesterday as the £2 billion flotation of Vector Hospitality was pulled at the eleventh hour.
Prospective investors worldwide shunned Vector — which was to be Britain’s largest property flotation this year — over fears that property prices are set to go into reverse.
Vector was to raise up to £2.26 billion to buy flagship assets ranging from the Waldorf Hilton and Cumberland hotels in London to the Malmaison and Hotel du Vin chains and De Vere and Village hotels.
Last night its advisers, led by Deutsche Bank, postponed the flotation indefinitely despite cutting back the float price by £460 million just a day earlier and giving themselves an extra 24 hours to complete the book-building exercise, a move that they said made them “confident” of getting it away.
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Sources close to the process said yesterday: “It is to do with market conditions. The market has softened and it is fair to say that the property market has been softening for the whole period of the marketing. All that added up to a price the principals were not happy with.”
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Thursday 7 June 2007
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