German property group Omonia Office shelves listing plans -sources

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 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)