IPSX gets FCA approval for investor-only service

Stock exchange IPSX has received approval from the Financial Conduct Authority to launch its second market, IPSX Wholesale. The latest product is an institutional investor-only service for the trading of higher risk vehicles, allowing investors the opportunity to buy shares in companies holding commercial real estate. It follows the launch last year of IPSX Prime, the first regulated exchange dedicated to commercial property. IPSX Wholesale will provide commercial real estate owners with an onshore market that can accept a range of corporate structures, including JV REITs.  The loan-to-value requirement is set at a maximum of 80%, compared with 40% for IPSX Prime, allowing companies with more leverage to seek admission to trading. David Delaney, group chief executive, said: “Many traditional routes for investing in real estate have been called into question by recent events in the investment market. The liquidity challenges and gating risk surrounding property funds is driving investors to reconsider their allocations. “Both of our markets of IPSX Prime and now IPSX Wholesale will give professional investors great choice and direct access into real estate asset owning companies, while limiting the risks from which some of the other investment routes suffer.” The exchange was founded by a team including current chairman Anthony Gahan in 2014. Since then the group has brought on board individuals including Roger Clarke, former head of corporate finance at M7 who is now IPSX’s head of capital markets, and Alan Ramsay, former head of compliance at HSBC, who acts as chief executive of IPSX’s UK subsidiary. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette