M7 takes IPSX stake

M7 Real Estate has invested in the new property stock exchange IPSX, which will launch early next year. The company has invested an undisclosed amount in the latest round of funding, following British Land and four partners at Tritax. IPSX aims to provide retail investors with the opportunity to gain exposure to single, recognisable assets rather than shares in a more complex company holding a portfolio of assets. Richard Croft, chief executive of M7 Real Estate, said: “As an investor an asset manager, we recognise the value IPSX’s flexible, liquid market will add to the commercial property sector. “There is strong demand from equity investors for higher-yielding assets and the launch of IPSX next year will provide a significant new regulated market opportunity.” IPSX facts • IPSX is a stock exchange for companies that own single commercial real estate assets. It is due to launch in Q1 2017 • Primary owners are Wyvern Partners investment banker Anthony Gahan, former chief executive of Plus Markets Cyril Theret, and former chief executive of LCH Clearnet Ian Axe. • IPSX is a recognised Investment Exchange, regulated by the FCA, similar to the London Metal Exchange • Minimum asset value is £700,000, “sensible minimum value” is £25m, early IPOs likely to be £50m-£100m with no maximum • At least 25% of each asset must be listed • Each property will have its own board and structure • Shares to be sold through IFAs and stockbrokers • Most companies listed likely to be set up as REITs From October: Tritax partners take stake in new property exchange From July: British Land buys property bourse stake • To send feedback, e-mail karl.tomusk@estatesgazette.com or tweet @ktomusk or @estatesgazette