German property group Omonia Office shelves listing plans -sources

Alstria Office REIT AG

26/10/2020 16:45

By Hans Seidenstuecker and Arno Schuetze
    FRANKFURT, Oct 26 (Reuters) - German real estate group
Omonia Office has shelved plans for a flotation in response to
decreased demand for office property in the pandemic and high
stock market volatility, people close to the matter said. 
    Omonia Office initially planned to announce plans last week,
but market volatility due to a spike in COVID-19 cases prompted
the company to delay the project they said, adding that it may
be revisited next year. 
    Omonia declined to comment. 
    The company had aimed to raise proceeds of 400 million euros
($473 mln) from the IPO with the view to using that to purchase
office space. The company had told investors that the pandemic
offered an opportunity to buy up property on the cheap. 
    But potential IPO investors shied away given the uncertain
outlook for the sector, as many as companies may use less office
space if they continue to allow many employees to work from home
after the pandemic.
     The shares of rival Alstria Office  AOXG.DE  have lost
about a third of their value since the beginning of the year. 
($1 = 0.8463 euros)

 (Reporting by Hans Seidenstücker and Arno Schuetze. Editing by
Jane Merriman)
 ((arno.schuetze@thomsonreuters.com; +49 30220133648;))