Jan. 9, 2019
IPSX Group Limited is delighted to announce that the Financial Conduct Authority (FCA) has issued a Recognition Order in relation to its wholly owned subsidiary IPSX UK Limited (IPSX or the International Property Securities Exchange).
IPSX Group therefore joins a small number of major international market infrastructure groups in operating a Recognised Investment Exchange (RIE) in the UK1. Designation as an RIE represents the highest level of authorisation available to a market operator in the UK and is comparable to the regulation of the world’s largest stock exchanges.
IPSX is the first and only regulated exchange dedicated to commercial real estate – an asset class worth some $30 trillion globally.
Issuers on IPSX will be companies owning single real estate assets2. 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, with clarity over the revenues and costs associated with it, typically also benefiting from the tax efficiency conferred by REIT status3. Issuer valuations will be a function of the perceived risk adjusted return available as a dividend together with the embedded value of the asset and the quality/strategy of the company’s asset manager.
The creation of IPSX reimagines real estate investment and democratises access to the asset class for every type of investor.
Anthony Gahan, Founder and Chairman of IPSX Group, explained the significance of IPSX:
“This is truly a landmark moment for real estate investment and a great example of fintech innovation out of the UK. From now on, every type of investor can access the returns from institutional investment grade real estate by buying and selling shares in issuers through IPSX. Imagine the ‘man on the street’ buying shares in a company owning the building he works in – or even the Premiership football stadium where he watches his favourite team play. Add to that a real estate yield, tangible asset backing together with the protections of IPSX’s regulated market and you have a compelling proposition.”
IPSX also adds a new dimension for sophisticated institutional investors looking for market liquidity, an exchange market price, speed of execution and specific choices outside the current fund options.
For the institutional real estate asset owner, IPSX provides an alternative public market option to a traditional private sale with the flexibility to retain an interest in the asset through a shareholding of the asset owning company.
For owner occupiers this functionality means that, for the first time, value can be released from strategic freehold assets without entering into a traditional sale and leaseback transaction or procuring a joint venture partner. Corporate real estate assets can therefore be a source of capital to reduce debt and/or invest in the owner’s core business.
Importantly, for all, IPSX connects sellers with a new, deep, international investor universe at a time when some real estate assets are so valuable that few institutions are able to buy alone and private sale processes result in only one bidder submitting an offer to buy the asset.
Anthony Gahan added:
“This is game changing news for asset owners and global investors, many of whom have helped to actively shape the IPSX proposition.”
Based on current discussions with potential issuers and subject to market conditions, IPSX anticipates the first IPOs will be launched from the end of Q1 2019 onwards.
IPSX proposes to add further exchange-based products to its offering including a professional market for closely held REITs together with new real estate indices and data products. It is also progressing plans to open further IPSX exchanges in Continental Europe, North America and Asia.
1. IPSX Group Limited joins the following market infrastructure groups operating RIEs in the UK: Hong Kong Exchanges and Clearing, Intercontinental Exchange, London Stock Exchange Group, Euronext, CME Group & CBOE Global Markets
2. Subject to satisfying IPSX’s eligibility requirements on portfolio commonality “Multiple Asset Issuers” will also be able to be admitted to IPSX’s Regulated Market
3. IPSX UK Limited expects to be designated as a Recognised Stock Exchange by HMRC, admission/trading on which is a requirement for REIT status
Notes to Editors
IPSX Group Limited is a market infrastructure and data products business established in 2014 and dedicated to real assets – initially real estate.Its wholly owned subsidiary, IPSX UK Limited, has been designated as a Recognised Investment Exchange by the FCA and will operate a regulated market in the UK.
IPSX’s shareholders include major international real estate investment groups and private equity investors representing the majority of the shareholder base alongside IPSX directors, employees and other private investors.
The boards and senior management team of IPSX Group Limited (see https://www.ipsx.com/investor-relations/ ) and IPSX UK Limited ( https://www.ipsx.com/team/ ) comprise highly qualified individuals with market infrastructure, equity capital markets, real estate, data, asset management and public company experience.
For further information visit ipsx.com
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Paul Downes, Senior Adviser, Group Communications
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IPSX Wholesale is a market exclusively for institutional and professional investors.