Workspace Property Trust postpones IPO, cites market conditions

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Workspace owns 148 office and flex properties totaling 9.9 million square feet in Philadelphia’s western and northern suburbs.(MONTCO.Today file photo)

Office landlord Workspace Property Trust has postponed its plan to publicly list shares on the New York Stock Exchange, citing “current market conditions,”  and suggesting possible scant investor interest in the company’s portfolio of suburban real estate, writes Jacob Adelman for philly.com. 


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“We are delaying the [initial public offering] but will reevaluate options at a later date,” the Horsham-based company said in a release Monday. “We do intend to utilize the public markets to expand our capital base; however, our current capital structure and balance sheet provides us with sufficient flexibility to grow our brand.”

Workspace, led by Thomas Rizk, a former Mack-Cali Realty Corp chief executive, built its portfolio of suburban office and light-industrial space through two large purchases from Liberty Property Trust, betting that such properties were poised to soar in value as today’s young urbanites seek homes — and jobs — outside city centers.

The IPO’s delay may indicate that investors are less confident than Rizk about prospects for a suburban office rebound, especially in the submarkets where the company’s property is located, said Ian Anderson, research director for CBRE, a commercial real estate firm in Philadelphia.

The pre-IPO placement sought to sell 39 million shares of the company — about half its total equity — for $12 to $15 each, according to the SEC filing. That would have yielded between $468 million and $585 million.

It had originally aimed for a stock exchange listing last Friday but rescheduled for Monday due to the Veterans Day holiday.

To read the complete story click here. 

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