Bridgewater Place to float on IPSXwritten by Bella Palmer
The move follows confirmation that Mailbox REIT, which M7 owns 70 per cent of, is to IPO with 84,850,000 Ordinary Shares
Bridgewater Place in Leeds will be given an IPO by its owners M7 Real Estate. M7 acquired Bridgwater Place in November for £84.5m, taking ownership of the skyscraper which offers 234,000 sq ft of office space as well as 200 apartments.
Bridgewater is 90 per cent let and includes EY, Eversheds and DWF amongst its tenants.
Upon acquiring Bridgewater, M7 said it was targeting an IPO on IPSX.
The move follows confirmation that Mailbox REIT, which M7 owns 70 per cent of, is to IPO with 84,850,000 Ordinary Shares issued with a nominal value of 10p each.
The company has raised £25,850,000 from the issue of 25,850,000 Ordinary Shares at a price of £1.00 per share representing nearly 30.5 per cent of the issued share capital on admission.
Richard Croft, executive chairman of M7 Real Estate, said: 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 to bring Bridgewater Place House in Leeds to market as the second IPO on IPSX in the coming months.
Bridgewater Place House is another flagship regional UK office building, being the tallest building in Yorkshire and offering income returns underpinned by strong tenants such as EY and multinational law firms DWF and Eversheds, he said.
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, Croft said.
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, he said.
IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world's first such exchange dedicated to the initial public offering (IPO) and secondary market trading of institutional grade commercial real estate assets.
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