LAPF Investments | World's first property exchange welcomes first IPO

This article originally appeared in LAPF Investments magazine, October 2020. 

Mailbox REIT hoped to become the first company to list its shares on International Property Securities Exchange (IPSX), the world’s first exchange dedicated to the trading of companies owning single, institutional grade real estate assets.

The company owns the Mailbox, a prime, office-led mixed use property in Birmingham and plans to raise up to £62.5 million via a placing, offer for subscription and intermediaries offer of shares at an issue price of 100p a share.

M7 Real Estate Financial Services will act as alternative investment fund manager and retain indirect ownership of around 46% of the company’s share capital after the shares are admitted, which is due to take place on 21 October.

Roger Clarke, head of capital markets at IPSX, said: “We created IPSX to make property investment more transparent, liquid and accessible offering a new way to invest in real estate. The exchange presents both a buying and selling opportunity for local government pension schemes.” With schemes increasingly looking for new sources of income in this low-rate environment, the exchange presents an income opportunity in an asset class generally favoured by pension schemes, said Clarke. “IPSX also offers a route to free capital from direct property investments through an IPO. For local government pension schemes, who often own local property assets, this exit route may be compelling,“ he added.