M7, the pan-European investment and asset manager specialising in multi-tenanted real estate, announces that shares in Mailbox REIT have commenced trading on the Wholesale segment of IPSX (a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of institutional grade commercial real estate assets). As a result, The Mailbox will become the first single property REIT to be listed on a recognised stock exchange.
The Mailbox comprises approximately 698,000 square feet of primarily office space, with a complementary, ancillary retail and leisure offering, located on a 4.8 acre waterside site in the heart of the UK’s second largest city, a five-minute walk from Birmingham New Street Station. Its 39 tenants are anchored by the BBC (and is the home of ‘The Archers’) with five very low risk tenants representing just over three quarters of the rent roll on a WAULT of approximately 16 years. It has been independently valued at £181m and investors will receive an initial income yield, paid quarterly, of 7% pa, which is expected to increase to c.11% pa over the next 3 years. M7 will remain the biggest shareholder and will manage the building.
This will be the first time that tradable equity shares in a single commercial property investment have been made available, providing an investor with the same income yield and capital value performance as if they owned the property direct, with tax neutrality, but for £1 per share rather than many tens of millions.
The full RNS relating to the listing can be found on The Mailbox website www.themailboxreit.com
Stephen Barter, chairman of Mailbox REIT, commented: “In becoming the first company to be admitted to IPSX and with its Ordinary Shares due to start trading next week, Mailbox REIT has carved out a unique place in the history of real estate capital markets investment. The Board and I look forward to working on behalf of the Company and its shareholders as we emerge from the worst of the pandemic and towards a brighter outlook where Birmingham is set to benefit from positive structural trends, including continued decentralisation, which will help support the Mailbox’s target returns alongside the active asset management plan already underway.”
Richard Croft, Executive Chairman of M7 Real Estate, added: “M7 is incredibly proud to be part of this landmark occasion in our sector and building on this momentum we are now advancing our plans for us to bring Bridgewater Place in Leeds to market as the second IPO on IPSX in the coming months. Bridgewater Place is another flagship regional UK office building, being the tallest building in Yorkshire and offering income returns underpinned by a strong tenants such as EY and multinational law firms DWF and Eversheds.
“The Mailbox offers long dated income streams, underpinned by very low-risk high-profile tenants, as well as significant income and value enhancement potential. The investment is further supported by the strengthening fundamentals of the Birmingham market, which is attracting growing occupier demand with a number of major blue-chip companies moving into the city, as seen most recently with Goldman Sachs International’s announcement of its intention to open a technology centre there. With an improving outlook, an expected economic recovery and by advancing our strategic plans for Mailbox REIT, we are well positioned to deliver for investors as a publicly traded company on IPSX.”