Reasons to IPO commercial real estate
IPSX is unique in the real estate investment landscape.
Commercial real estate owners enjoy access to a wide range of investors while commercial real estate investors of all types experience liquidity throughout the trading day.
IPSX offers commercial real estate owners, including owner occupiers, a powerful new capital markets option to release value from their real estate assets to the widest possible pool of global investors, including retail investors. IPSX allows commercial real estate owners looking to IPO, the flexibility of ownership, as well as diversification of ownership.
Access to new commercial real estate investors
IPOs on stock exchanges worldwide are mainly targeted at professional investors such as pension funds, insurance companies and hedge funds.
IPSX's regulatory status allows investors of all types to buy shares through brokers, retail platforms and wealth managers.
Flexibility of ownership style
Owners of commercial real estate are usually faced with a limited set of choices – keep the asset, sell it, or enter into a potentially complex Joint Venture agreement with a new partner. Now, IPSX offers you diversification of ownership as well as flexibility of ownership investment style and location.
Retain ownership
Now, IPSX allows issuers to retain economic ownership of the underlying asset by retaining anything from 0%-100% of the shares in the trading company (subject to satisfying the minimum free float requirement of 10%).
Market approach to valuation
Traditionally, publicly quoted commercial real estate in the UK held in a fund structure has been valued by stock market investors against the reported Net Asset Value of the shares. This does not accurately reflect the company’s ability to generate cashflow to pay dividends and neither is it fully transparent.
Valuations focusing more on multiples of cashflow, rather than a view on the prospects for asset values, bring commercial real estate more in line with other sectors of the stock market.
Superior performance
Potential for superior performance through single asset transparency.
Speed of execution
Completing a private market asset sale in the UK takes an average of 6 months. Selling shares to commercial real estate investors via an IPO on IPSX can take as little as 8 – 12 weeks.
Tax efficiency
Issuers may be able to reconfigure their ownership of underlying commercial real estate assets into corporate structures without incurring Stamp Duty Land Tax. This reduction in tax payable on the transfer may benefit both the current owner and the new shareholder.
Issuers can choose to bring the company admitted to trading on IPSX within the scope of the UK Real Estate Investment Trust (“REIT”) regime.
Ready to get started?
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