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Why invest in commercial real estate

There are many reasons why people invest in commercial real estate. One of the main reasons is to get real estate returns with the liquidity of regulated markets, but there are many more benefits to reap. We've listed some of the reasons why you should invest in real estate below.

Attractive yields

Commercial Real Estate is an asset class with a history of delivering attractive income yields. On IPSX, issuers own ‘stabilised assets’. These are commercial real estate assets which are largely or fully let and generating a net distribution from the rental income. Historically, commercial real estate in the UK has shown consistent returns with lower volatility than any of the other mainstream asset classes.

Long Term Returns, 1950-2017, by asset class (%y-o-y)

Transparency

Every IPO on IPSX publishes detailed information at the single asset level that is not ordinarily available to investors in REIT shares. This encourages far greater transparency and allows investors to make better informed decisions. If the issuer is a REIT, the dividend distribution level will be driven by REIT legislation.

Liquidity

Companies admitted to trading are required to appoint Exchange-approved market makers who have a continuing obligation to make a two-way market in their shares. This means that, during market hours, investors are always provided with a price at which they can either buy or sell shares.

Valuations based on predictable cashflow

IPSX allows investors direct exposure to underlying commercial real estate assets which has previously not been available. This enables access to a diversified public market proxy for direct investment in institutional grade commercial real estate.

Regulation & protection

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.

Learn more about why you should invest in real estate

Download our investor factsheet here

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International Property Securities Exchange is the trading name of IPSX UK Limited. IPSX UK Limited is a company registered in England and Wales with Company Number 10519448, whose registered address is 20 Birchin Lane, London, EC3V 9DU.

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