29th Oct 2020 19:03
(Alliance News) - Mailbox REIT PLC on Thursday said it has landed an agreement with IWG PLC ahead of the property owners initial public offering.
Mailbox REIT, which owns a single mixed-use property in Birmingham known as the Mailbox, is expected to become the first single-asset real estate investment trust to be admitted to trading on the International Property Securities Exchange.
The IPSX is a new investment exchange launched in the spring of 2020, which is regulated by the UK Financial Conduct Authority and is focused on the trading of companies that own single institutional-grade real estate assets or multiple similar assets.
Mailbox REIT said IWG will sign a 10-year management contract over the entire 50,000 square feet of office space on the first level of the Birmingham Mailbox asset.
"The innovative arrangement will see occupiers of the spaces offices pay rent directly to the Mailbox REIT with IWG's management fees based on a percentage of rent received. This allows both IWG and the company to benefit from the operational success of the flexible and serviced office space at the Mailbox," Mailbox REIT added.
"IWG has also expressed an intention to subscribe to the company's placing, offer for subscription and intermediaries offer of ordinary shares in the capital of the company, ahead of its proposed admission to IPSX."
As a result of the deal, Mailbox REIT has extended its IPO timetable. It now expects to begin trading on December 14.
"The directors and the AIFM have decided to extend the offer timetable by a further six weeks, to allow the definitive agreement with IWG to be put in place and to provide time for the company to issue a supplementary prospectus in relation to the amended size of the offer required to raise an additional GBP3.5 million to pay for the fit out," Mailbox REIT added.
By Eric Cunha; [email protected]
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