Trading has started today in shares of Mailbox REIT, the company which now owns the mixed-use building in Birmingham city centre.
The company is the first to list on the International Property Securities Exchange, the new stock exchange set up to trade shares in companies which own single property assets.
Mailbox REIT has raised £25.8 million from a share issue which represents around 30 per cent of the total issued share capital on admission.
M7 Real Estate, which acquired the Mailbox in 2019, will retain ownership of approximately 70 per cent and continue as its asset manager.
The capital has been raised from a number of institutional and family office investors including flexible workspace provider IWG which is currently fitting out the ground floor of the building to create a new ‘Spaces’ facility there.
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James Caan, a former investor on hit BBC show Dragons’ Den, is also backing the float.
The float was supposed to launch in December but was delayed after a potential buyer emerged for M7 Real Estate. It was then acquired in January by Oxford Properties.
The Mailbox, which is valued at around £181 million, comprises around 698,000 sq ft of space with offices, residential, retail and leisure occupiers including BBC Midlands, bike retailer Ribble, high-end department store Harvey Nichols and hotel Malmaison.
It has a passing annual rent of around £8.8 million a year.
Mailbox REIT chairman Stephen Barter said: “In becoming the first company to be admitted to and have its shares traded on IPSX, 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 under way.”
Richard Croft, executive chairman of M7 Real Estate, added: “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’ 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.”
The second float on the new exchange is set to be Bridgewater Place House in Leeds later this year.