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Henley leads launch financing for IPSX real estate securities exchange

By Paul Norman - Thursday, May 10, 2018 14:18

Henley, the global private equity real estate investor, is leading a consortium of real estate investment management groups in providing the financial backing to launch commercial real estate securities exchange IPSX later this year.

London-based International Property Securities Exchange will be the first regulated securities exchange in the world dedicated to the IPO and trading of companies owning single commercial real estate assets

IPSX describes the new exchange as a "world first, providing a new capital markets solution for commercial real estate".

IPSX said it has been established to "connect real estate owners with the wider investment world by providing a regulated market on which owners will be able to IPO companies owning individual commercial real estate assets as stand-alone REITs".

IPSX will operate a dedicated exchange on which real estate securities will trade as a mainstream asset class available to institutional and private investors from all over the world.

Early potential issuers are progressing discussions with the exchange and include private equity real estate funds, Sovereign Wealth Funds, major quoted real estate groups and owner occupiers seeking to unlock value from their real estate holdings.

Henley is leading the launch financing round for IPSX alongside existing shareholders and supporters of the IPSX proposition.

Henley’s Chief Investment Officer, Justin Meissel, has been appointed to the board of London Real Estate Exchange Limited, the IPSX Group holding company.

Ian Rickwood, CEO of Henley, said: “Investor options for real estate holdings have until now been somewhat limited through traditional funds or direct ownership. Henley provided a fresh approach with its deal-by-deal private equity model ten years ago and now IPSX will add a step change in the optionality for real estate investment which is long overdue. Institutional and retail investors will have greater direct choices as to the real estate assets they wish to invest in within a regulated and trusted framework. Greater diversification of commercial property ownership and engagement is a very welcome development for the sector.”

Justin Meissel, Chief Investment Officer of Henley, added: “With the ownership of commercial real estate becoming increasingly democratised and regulated, we see great demand for a dedicated exchange starting with IPSX in London but with the potential to expand into other major markets in the future. We are excited to be partnering with existing investors and the IPSX management team to back a proposition which will be transformative for the industry.”

Anthony Gahan, Chairman of IPSX Group, concluded: "We are delighted to welcome Henley as a significant investor in and valued partner to IPSX and look forward to working closely with all our institutional investors in the launch of IPSX as a default capital markets option for owners and route to market for investors.”

pnorman@costar.co.uk

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