Reasons to invest in real estate
Real estate returns with the liquidity of listed markets
- Commercial Real Estate is regarded as an asset class with a history of delivering attractive income yields
- Issuers on IPSX own ‘stabilised assets’ - being commercial real estate assets which are largely or fully let and generating a net distribution from the rental income.
- Historically, real estate in the UK has shown consistent returns with lower volatility than any of the other mainstream asset classes
- An IPO on IPSX will necessitate the publication of detailed information at the single asset level that is not ordinarily available to investors in REIT shares
- This will encourage far greater transparency enabling investors to make better informed decisions
- If the issuer is a REIT, the dividend distribution level will be driven by the requirements of REIT legislation
- Companies admitted to trading on IPSX will be required to appoint Exchange-approved market makers who have a continuing obligation to make a two-way market in their shares
- This means that investors will always be provided with a price at which they can either buy or sell shares
- Liquidity and valuations based on predictable cashflows
- IPSX allows investors direct exposure to underlying commercial real estate assets which has previously not been available
- Investors therefore enjoy access to a diversified public market proxy for direct investment in institutional grade real estate
- IPSX has been recognised by the Financial Conduct Authority as a Recognised Investment Exchange, in line with the other leading UK Exchanges.
- All investors, professional or retail, whether investing in an institutional pension fund or an individual’s SIPP or ISA, therefore benefit from the highest levels of investor protection and regulatory oversight