Real estate stock exchange International Property Securities Exchange (IPSX) is due to close after struggling to find new investment.
The exchange, which provides investors with access to single-asset real estate investment trusts (Reit), was launched in 2019 and currently has three listings – Mailbox Reit, M7 Regional E-Warehouse Reit, and BWP Reit.
Birmingham-based Mailbox Reit listed on the exchange in May 2021. Since then, its share price has fallen over 20%.
Stephen Barter, chair of Mailbox Reit, said: “While we are sad to learn that IPSX is to wind down, we have been preparing for the possibility of such an outcome.
“We are finalising arrangements for listing and trading on an alternative platform, where access to trading and liquidity will be improved, while protecting the interests of all our shareholders. In the meantime we note that IPSX will remain open, while it winds down its operations”.
‘Writing on the wall’
Both M7 Regional E-Warehouse Reit and BWP Reit also issued updates confirming they are looking into alternative solutions for listing following IPSX’s closure.
IPSX said its markets will continue to operate until further notice.
Richard Williams, property analyst at QuotedData, said: “After four years and just three listings, the writing was on the wall for the IPSX. It can blame bad luck to some degree, with rising interest rates and economic uncertainty choking off new investment, but it seems to me that from the start it was offering a solution to a problem that did not exist.
“Investors can gain access to established Reits through the many established stock exchanges that offer greater liquidity.”
See also: Home Reit board to depart in next 12 months
–
PA event: Autumn Congress: September 27th– 29th | RSVP via email
Hosted at The South lodge Hotel. Transport and accommodation will be provided for the duration of the event.
Our Autumn Congress will serve as a comprehensive platform for discussing the key trends, challenges, and innovations shaping the wealth management landscape. It will bring together thought leaders and industry professionals for enlightening discussions and networking opportunities. Register link |
Sponsors include Alliance Bernstein, Alger, Boston Partners, Baillie Gifford, CCLA, Janus Henderson, GAM, Jupiter AM and much more! Please see the full line-up on our website: AC2023
