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Jan. 9, 2019

FCA gives greenlight to property stock exchange | Business Telegraph

This article originally appeared in the Business Telegraph on 9th January 2019. 

A new commercial real estate exchange has been recognised by the City watchdog, paving the way for investors to buy shares in buildings through the new trading venue.

IPSX Group said on Wednesday the Financial Conduct Authority had issued a recognition order granting it recognised investment exchange status.

The company said this was “the highest level of authorisation available to a market operator in the UK” and made it the first regulated exchange dedicated to commercial real estate. IPSX hopes to launch its first IPOs from the end of the first quarter of this year.

Shareholders in IPSX include British Land, the listed property company, and real estate private equity groups such as Moorfield Group and M7 Real Estate.

IPSX will provide a venue for trading of companies that own single properties. “For the first time, investors will have a choice as to where they invest and have direct sight of the specific underlying property asset that their investment relates to,” the exchange said.

This would provide “clarity over the revenues and costs associated with it, typically also benefiting from the tax efficiency conferred by real estate investment trust status,” it added. 

IPSX it said the exchange could be used by businesses that occupy buildings to release value from freehold assets “without entering into a traditional sale and leaseback transaction or procuring a joint venture partner”.