M7 founder Richard Croft is lining up a fourth listing on the IPSX stock exchange, as preparations get underway for the float of a warehouse portfolio valued at £228.9m.
The team behind M7 Box+ REIT expects to list shares on IPSX’s wholesale market next month, and when admitted to the market will buy seven warehouses from M7 Box+ II LP. Tenants in the portfolio include B&Q (the largest tenant, representing 31.4% of annual rent), DSG Retail (9.86%), Aldi (5.57%) and B&M (4.58%).
The deal is being set up to offer existing shareholders liquidity in their holdings in the portfolio, but no funds will be raised at the time of the IPO.
M7 Real Estate Financial Services will act as alternative investment fund manager to the REIT, while M7 Real Estate will act as asset manager. M7 will own 4.69% of the share capital after admission.
The deal continues the close ties between IPSX’s listings and Croft, who also owns a stake in the exchange but is leaving his role as M7 executive chairman later this year. M7 Real Estate Financial Services is also the alternative investment fund manager of Mailbox REIT, M7 Regional E-Warehouse REIT and BWP REIT, the other stocks listed on IPSX. All are tied to assets originally partially owned within the M7 Group.
Croft said the four listings emphasised “the platform’s ability to act as a capital markets alternative for property owners”.
IPSX chief executive Roger Clarke told EG in May 2022, when the market had just two listings, that he hoped for more variety in the companies floating.
“People often observe that M7, as well as being a big shareholder and Richard Croft being a director of the company, are behind the first two issues,” he said at the time, adding that a near-£10m fundraise was done to encourage new partners to back the business and attract fresh IPOs.
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