IPSX has certainly created a buzz in the commercial property world. This is a new commercial real estate exchange that has just been recognised by the City's Financial Conduct Authority.
The new Exchange paves the way for investors to trade shares in specific commercial properties. The idea is that a building owner lists a specific commercial property on the Exchange and investors, individuals or companies can buy and sell shares in that specific asset.
For the first time investors will be able to invest in a specific asset and have direct sight of revenues and costs relating to that asset. The IPSX will mean owners of very large building can create liquidity for an asset that otherwise might be difficult, slow and expensive to trade as an asset. The Exchange also offers a way for owners to release value from assets without the traditional sale and leaseback route or JV route.
Apparently the first IPO will be in the next 2 months with a number of issuers lining up assets for launch.
Potentially this is a game changer for building owners, investors and advisers. Lets see how it develops.
M7’s Roger Clarke seconded to IPSX