Jan. 27, 2020
IPSX UK Limited, the Recognised Investment Exchange (RIE) operated by IPSX Group Limited which offers the world’s first regulated securities exchange dedicated to commercial real estate, has received approval from the Financial Conduct Authority (FCA) to launch its second market, IPSX Wholesale.
A Multilateral Trading Facility (MTF), IPSX Wholesale is a market exclusively for institutional investors1. It joins IPSX Prime, the exchange’s Regulated Market, in providing investors with access to shares in companies holding commercial real estate.
IPSX Wholesale has been designed to provide commercial real estate owners with an onshore market that can accept a variety of different corporate structures within a flexible regulatory environment, including JV REITs.
Issuers owning assets which they intend to repurpose or retrofit will be able to seek admission to IPSX Wholesale as an alternate source of fundraising, provided they anticipate the asset becoming stabilised and income-producing within a suitable timeframe. As well as stabilised assets, IPSX Wholesale is open to development and regeneration projects.
Further to this broader range of eligible assets, the types of issuers eligible for admission to IPSX Wholesale could include more complex ownership structures, more complex legal arrangements and more unusual tenancy arrangements.
David Delaney, Group Chief Executive said: “IPSX Wholesale provides an ideal platform for real estate owners looking for a venue which has a huge amount of flexibility but within the framework of a closely supervised exchange-regulated market. IPSX Wholesale is a new market that will support all the traditional property activities that UK real estate owners would want to do, in a recognised, transparent and more liquid environment.
“Many traditional routes for investing in real estate have been called into question by recent events in the investment market. The liquidity challenges and gating risk surrounding property funds is driving investors to reconsider their allocations. Both of our markets of IPSX Prime and now IPSX Wholesale will give professional investors great choice and direct access into real estate asset owning companies whilst limiting the risks from which some of the other investment routes suffer.”
As with IPSX Prime, IPSX Wholesale issuers are required to appoint an IPSX Lead Adviser to take them through the admission process, and an IPSX Approved Valuer to produce a RICS compliant Red Book Valuation. IPSX Wholesale will be launching in the Spring of 2020.
Notes to Editors
1 Investment in IPSX Wholesale issuers will be available to Institutional Investors only. Examples of these include:
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