Henley, the global private equity real estate investor, is leading a consortium of real estate investment management groups in financing the launch of the London-based International Property Securities Exchange (IPSX) later this year.
The IPSX will be the first regulated securities exchange in the world dedicated to the listing and trading of companies that own individual commercial real estate assets. Henley has claimed that the exchange will transform the real estate sector when it is finally launched. IPSX is meant to connect real estate owners with the wider investment world by providing a regulated market on which owners will be able to progress an initial public offering (IPO) of their commercial real estate assets as stand-alone REITs. The securities on the IPSX will then be available to institutional and private investors from all over the world.
According to Henley, early potential issuers are in discussions with the IPSX. These include private equity real estate funds, sovereign wealth funds, major quoted real estate groups and owner-occupiers.
Henley’s chief investment officer, Justin Meissel, who has been appointed to the board of London Real Estate Exchange Limited, the holding company of the IPSX, said that the company was excited to be partnering with existing investors and the IPSX management team to back a proposition which “will be transformative” for the industry.
“With the ownership of commercial real estate becoming increasingly democratized 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,” says Meissel.
Ian Rickwood, CEO of Henley, adds: “Investor options for real estate holdings have until now been somewhat limited through traditional funds or direct ownership. 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.”
