IPSX Wholesale is a market for institutional and professional real estate investors. It allows institutional investors to buy property shares in IPSX Wholesale issuers through brokers, meaning that they can acquire fractional ownership of much larger real estate assets which historically may have been more narrowly held or completely inaccessible to real estate investors.
IPSX Wholesale allows institutional investors to invest in commercial real estate without being trapped in complicated agreements or difficult arrangements with real estate owners.
Institutional investors, including professional clients and eligible counterparties under MiFID are defined as:
- Unit trust scheme trustees/managers authorised by the FCA, or equivalent
- Open-ended investment companies
- Collective investment schemes
- Pension fund trustees/managers
- Insurance companies
- Firms authorised by the FCA, or equivalent
- Sovereign wealth funds
- REITs and offshore REIT equivalent
- Self-identified “professional investors”
IPSX Wholesale has been designed to admit holding structures which may be more complex, and deliver returns comprising more capital return relative to income, including Joint Venture (“JV”) REITs, development and regeneration projects.
- Real estate investors will be able to access information at the single asset level that is not ordinarily available to investors in REIT shares. This will provide far greater transparency enabling investors to make better and more informed decisions about real estate investments. If the issuer is a REIT, the dividend distribution level will be driven by the requirements of REIT legislation.
- Real estate investors will have access to higher yielding, higher risk investments than those available on IPSX Prime.
- Liquidity is provided by brokers as opposed to market makers with “matched transactions”.
- The market is regulated by the FCA as a multilateral trading facility.
- Cornerstone investors in companies admitted to trading on IPSX Wholesale will be required to appoint a Wholesale Broker to represent trading interest in the property shares admitted to trading on the market.
Managing Director and Head of Capital Marketsrclarke@ipsx.com