Reasons to invest in real estate

Back

Reasons to invest in real estate

Real estate returns with the liquidity of listed markets

  • Commercial Real Estate is regarded as an asset class with a history of delivering attractive income yields
  • Issuers on IPSX own ‘stabilised assets’ - being commercial real estate assets which are largely or fully let and generating a net distribution from the rental income.
  • Historically, real estate in the UK has shown consistent returns with lower volatility than any of the other mainstream asset classes
  • An IPO on IPSX will necessitate the publication of detailed information at the single asset level that is not ordinarily available to investors in REIT shares
  • This will encourage far greater transparency enabling investors to make better informed decisions
  • If the issuer is a REIT, the dividend distribution level will be driven by the requirements of REIT legislation
  • Companies admitted to trading on IPSX will be required to appoint Exchange-approved market makers who have a continuing obligation to make a two-way market in their shares
  • This means that investors will always be provided with a price at which they can either buy or sell shares
  • Liquidity and valuations based on predictable cashflows
  • IPSX allows investors direct exposure to underlying commercial real estate assets which has previously not been available
  • Investors therefore enjoy access to a diversified public market proxy for direct investment in institutional grade real estate
  • IPSX has been recognised by the Financial Conduct Authority as a Recognised Investment Exchange, in line with the other leading UK Exchanges.
  • All investors, professional or retail, whether investing in an institutional pension fund or an individual’s SIPP or ISA, therefore benefit from the highest levels of investor protection and regulatory oversight

Download our “Investing in real estate” factsheet produced by Hardman & Co.