Mailbox REIT PLC (LON:MBOX) has become the first company to list on the IPSX specialist property exchange, with a valuation of £84.85mln.
The company, which owns the Mailbox, a large prime office-led mixed-use property in Birmingham, has been admitted to the FCA-regulated Wholesale segment of the IPSX.
It has raised £28.85mln at £1 per share by selling 30.5% of the business to institutional backers and family offices, including IWG, the owner of Regus.
M7 Real Estate will hold the remainder post-float.
The Mailbox is a five-minute walk from Birmingham's New Street Station and comprises around 698,000 square feet of mainly office space, anchored by the BBC, with a complementary retail and leisure offering.
Over the next three to five years, the property will be further repositioned for growth as a 'Live Work Play' destination.
Independently valued at £181mln, the Mailbox generates a passing rent of £8.84mln year and has an estimated rental value of just over £15mln (assuming full occupancy).
Richard Croft, chairman of M7 Real Estate, the Mailbox’s asset manager and majority owner, said the property “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 was seen most recently with Goldman Sachs International's announcement of its intention to open a technology centre there,” he added.
“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."
Plans are now advancing to bring a second property to market - Bridgewater House in Leeds.