As IPSX UK, the world’s first stock exchange for single properties, braces itself for trading to commence, trade body the British Property Federation has given the new market a ringing endorsement, adding to positive feedback from leading individuals in the sector.
In an open letter to the industry, BPF chief executive Melanie Leech said that the federation believes that IPSX is “a significant development in the modernisation of the real estate capital markets.”
Leech added that the federation supports the new exchange’s ambition to create a liquid market for single properties, noting key characteristics such as dividend and cost transparency, and its suitability for direct or self-invested personal pension (SIPP) investment.
“We also welcome the opportunity that IPSX aims to provide, as a platform for the industry to showcase broader economic, environmental and social initiatives,” she said, adding that the level of accountability and transparency will resonate with institutional and private investors and is in line with the BPF’s Redefining Real Estate campaign.
Public support from property leaders
In a separate letter, industry heavyweights such as SEGRO plc, Nuveen Real Assets, Savills, Tishman Speyer and Argent have been publicly supportive as have prominent property figures such as former Helical chairman Mike Slade, Segro CEO David Sleath and IWG founder and CEO Mark Dixon, M7 Real Estate executive chairman Richard Croft, Tritax Eurobox chairman Rob Orr and Savills’ UK CEO Richard Rees.
They said that when the first assets are listed on the exchange this year it will provide property owners with “a more flexible way to release capital and direct access to professionally managed real estate investments for both institutions and private investors alike.”
It is expected that trading will begin on IPSX in the coming weeks but, according to a spokesperson, precise timing depends on when the first issuer decides that the time is right to launch an IPO. However, he added that there is a “very strong pipeline of securities lined up to come on to the exchange.”