A London-listed property investment trust has scrapped a planned fundraising in a sign that volatility in equity markets is now hampering deal flow.

The AEW UK Long Lease REIT had planned to raise up to £35m through selling new shares, but in a stock exchange statement this morning, it said that "in light of the current volatility in the market [the board] has decided to withdraw the issue". The deal was being run by Fidante Capital.