The listing of Birmingham’s Mailbox on the IPSX exchange has been pushed back again as a deal is worked out to bring serviced office provider IWG into the building.
Mailbox REIT, the company set up to float the building on the real estate-focused exchange, had already delayed the IPO by two weeks to give its team more time to handle what it described as “significant interest from retail investors”. After that extension, the results of the IPO were expected to be announced on 3 November and trading to start on 5 November.
Those dates have now been pushed back by a further six weeks, with shares in the exchange’s first IPO set to start trading on 14 December. The extra time will be used to seal a deal with IWG, which will offer serviced workspace in the building, and to issue an updated prospectus to secure a further £3.5m for fitting out the new space. IWG is expected to buy a stake in Mailbox REIT as part of the IPO.
The deal between IWG and M7 Real Estate – the Mailbox’s current owner – is expected to see IWG sign a 10-year management contract to take 50,000 sq ft in the building that will be converted from retail to office space. The space will be run under IWG’s Spaces brand and occupiers will pay rent directly to Mailbox REIT. IWG will then take a management fee based on a percentage of rent received. The Spaces offices should open during the third quarter of next year.
In a statement announcing the planned deal, IWG chief executive Mark Dixon hailed what he called an “innovative structure” to the transaction “which sees both ourselves and the property owner share in the future success of the operation”.
M7 Real Estate chairman Richard Croft said the deal “will mark a significant acceleration of our asset management plan for the Mailbox”.
See also: IPSX warns over ‘material uncertainty’
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