The Financial Conduct Authority (FCA) has officially recognised a new commercial real estate exchange from IPSX. This new exchange will allow investors to purchase shares in single asset real estate companies that own underlying properties from the end of the first quarter of 2020.
The exchange will provide investors with choice and transparency to their investment. Corporate owner occupiers will be able to use the exchange to release value from their freehold assets without procuring a joint venture partner or proceeding with a traditional sale/leaseback transaction by admitting to trade assets they own through an operating company. Shareholders in IPSX Group include the listed property company, British Land, and a variety of private equity real estate groups including M7 Real Estate and Henley Investments.
The role of Blue Flamingo
Blue Flamingo built the website for the new exchange which integrates and displays trading data from multiple sources. The website (ipsx.com) needs to display real time and historic data for the securities admitted to trading, the first of which is expected later his year. This includes real time pricing information similar to a regular stock exchange but also details on the underlying assets including photos.
From a technical perspective the integrations needed are complex. The property related data is provided daily by Golden Source using SFTP. The real time trading data, which also drives the charting software, is provided by QuantHouse via API. It was essential that the whole solution is seamless and robust due to the regulatory requirements that stock exchanges must adhere to when posting data to the market.
IPSX is in talks with a number of different asset owners regarding more than £6bn worth of IPOs, including hospitals, sports stadia and office blocks. The group is confident in its ability to attract a significant segment of the commercial real estate market in the UK and sights are already being set on locations further afield.