Thoughts from Hardman & Co analyst, Mike Foster's recent publication on The International Property Securities Exchange (IPSX) featured in Emma Powell's Investors Chronical article on 31st December 2019.
Emma’s piece on IPSX highlights the decline in investor appetite towards UK property over the past year, providing a clear opportunity for IPSX and its upcoming IPO’s to pique investor interest once again with the promise of lower-cost & transparent methods of owning UK commercial property assets.
Featuring comments from Hardman & Co, Mike Foster’s note shares his estimation that IPSX single-asset-owning companies might be able to achieve average EPRA cost ratios – net overheads to gross rental income – of as low as 10 per cent, below the cost of many large Reits. By way of comparison, British Land (BLND) recorded a cost ratio of 16.9 per cent in 2018.
For the full article please click here.