The debut listing on the world’s first real estate stock exchange has taken place today.
Mailbox REIT, which owns the Mailbox office block in Birmingham, began trading on the International Property Securities Exchange (IPSX) this morning.
The company, set up by M7 Real Estate, issued 84,850,000 shares, which have been admitted to trading on the Wholesale segment of the IPSX (for professional investors only).
It has raised £25.85m from the issue of 25,850,000 shares at a price of £1 per share. Shareholders include IWG plc, the flexible workspace provider that is also a tenant in the building.
This represents 30.5% of the issued capital. M7 Real Estate will retain ownership of the remaining 69.5% of the company’s share capital.
The Mailbox comprises 698,000 sq ft of primarily office space, with ancillary retail and leisure offering, located on a 4.8-acre waterside site in the centre of Birmingham.
Valued at £181m, the property produces a passing rent of £8.8m a year with an estimated rental value of £15.05m, assuming full occupancy.
The company is currently in the process of converting level one of the Mailbox from retail into 50,000 sq ft of flexible office space which will be operated by IWG under its Spaces co-working brand on a new 10 year agreement.
The “innovative new leasing structure” will see occupiers of the Spaces offices pay rent directly to the Mailbox REIT with IWG plc’s management fees based on a percentage of rent received.
The debut IPSX float had been delayed several times, after initially being announced last October.
M7 Real Estate is now preparing a second listing on IPSX via its Bridgewater Place House office building in Leeds. The asset is the tallest building in Yorkshire with tenants including advisory group EY and multinational law firms DWF and Eversheds
Debut listing on world’s first real estate stock exchange