The exchange allows real estate investors the opportunity to access the high-yielding income from real estate but avoids the risks of investing in an opaque property fund. The Financial Conduct Authority has approved IPSX as a Recognised Investment Exchange providing real estate investors with the opportunity of investing directly into operating companies that own stabilised commercial real estate assets which are largely fully let and generating a net distribution from the rental income.
IPSX Prime offers a new venue for real estate investors to trade shares in commercial real estate. Investors will benefit from the opportunity to invest in new assets that have never previously been available on the capital markets at substantially lower costs compared to buying real estate directly.
For the first time commercial property investors will be able to make an investment in listed companies that own individual real estate assets that have previously been only available to the largest institutions and sovereign wealth funds without having to purchase opaque funds.
Real estate Investors can buy and sell shares in IPSX listed companies in the same way they would with shares in a FTSE 100 company; through their stockbroker or retail platform, such as The Share Centre.
Two-way pricing is provided by market makers throughout the trading day so holders of shares will always be able to buy or sell in normal market conditions. Given this liquidity the shares can never suffer from “gating” as many of the open-ended real estate funds have been prone to.
Real estate investors will have much greater information on the asset with six monthly in depth RICS valuations allowing investors to make a more informed investment decision and to monitor their investment more easily.
By focusing on single assets (or multiple assets with commonality), the operating costs are reduced as there is no need to focus on investment management of a portfolio rather the focus is solely on the management of the specific asset.
While even well-regulated generalist REITs can trade at wide discounts to Net Asset Value (NAV), market appetite for specialist REITs means that their share prices currently trade at a small premium, on average. SARCs listed on IPSX will enable real estate investors to take this focus even further.
Lorem ipsum dolor sit amet, consectetur adipiscing elit
Lorem ipsum dolor sit amet, consectetur adipiscing elit
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore
Group Chief Executive Officer