March 13, 2019
This article originally appeared in the MIPIM Daily News on Tuesday 13th March 2019.
The New regulated stock exchange, the International Property Securities Exchange (IPSX), which launched in January, is exhibiting at the London Stand at MIPIM, aiming to expand its trading base and to encourage private and professional investors to use it as a real estate investment platform.
IPSX received Financial Conduct Authority (FCA) approval at the start of the year to become the only stock market dedicated to commercial real estate assets.
It is operating two markets: IPSX Prime as the core market on which commercial real estate owners can undertake initial public offerings of companies owning a single commercial real estate asset or, if approved, multiple assets; and IPSX Wholesale, still under development, which will focus specifically on closely-held assets.
IPSX chairman Anthony Gahan told MIPIM News the rationale for a dedicated stock market – the only one of the 250 stock exchanges worldwide to focus purely on real estate – is that real estate is still considered an alternative asset class despite its scale, performance and maturity. In addition, real estate has often been seen as restrictive for smaller investors, particularly retail investors. IPSX investors will be able to buy shares directly in companies holding single commercial real estate assets.
“We want to open up the world of real estate to everyone,” Gahan said. “Interest in real estate remains very high and the industry is also very international, so we want to encourage companies from all markets to participate.” Careful development of IPSX, which Gahan said has taken four and a half years to bring to market, has attempted to identify “real estate pain points” and will “evolve as new products are created to exist on the exchange” as time goes on.
IPSX Wholesale is a market exclusively for institutional and professional investors.