M7’s Mailbox IPO kick starts new property stock exchange

International Property Securities Exchange (IPSX), the new exchange for shares in single real estate assets, has now gone live with the admission of Mailbox REIT plc which has become the first company to be traded on the new market.

IPSX said the announcement “heralds the dawn of a new era in real estate investment”, opening up the real estate asset class to a wider group of investors.

IPSX is the world’s first regulated securities exchange dedicated to the initial public offering and secondary market trading of companies owning single institutional-grade commercial real estate assets and multiple assets “with commonality”.

Mailbox REIT was admitted to trading on the IPSX Wholesale Market having raised over £25 million through a placing of ordinary shares. IPSX Wholesale is exclusively for institutional and professional investors trading assets that have a minimum market value in excess of £50 million.

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“In becoming the first company to be admitted to and have its shares traded on IPSX, Mailbox REIT has carved out a unique place in the history of real estate capital markets investment,” Mailbox chairman Stephen Barter said.

Mailbox REIT is the owner of The Mailbox, which is located on a 4.8 acre site in UK city Birmingham. It comprises approximately 698,000 sq ft (64,846 sq m) of mostly office space anchored by the BBC, with some retail and leisure.

Mailbox REIT issued 25.85 million ordinary shares at £1.00 per share representing about 30.5% of the issued share capital. Investors included flexible workspace provider IWG, which is also one of Mailbox’s occupiers.

Asset and investment manager M7 Real Estate acquired The Mailbox in December 2019 from a joint venture between a Brockton Capital-advised fund and Milligan Retail. M7 will retain ownership of approximately 70% of the company’s share capital. Its wholly-owned subsidiary M7 Real Estate Financial Services, will act as alternative investment fund manager to Mailbox REIT and M7 Real Estate will act as asset manager.

M7 could also be instrumental in the admission of IPSX’s second traded company. M7 said it will start marketing Bridgewater Place House in central Leeds to potential investors ahead of an IPO on IPSX.

M7 bought the 234,000 sq ft (21,739 sq m) Bridgewater Place House office building, Yorkshire’s tallest, in November 2020. It is 90% let to management consultant EY and law firms DWF and Eversheds.