M7 to raise £35m in IPSX float for Bridgewater Place building

M7 Real Estate is seeking to raise £35m (€40m) in an initial public offering (IPO) as it lists a newly created single asset company on UK’s International Property Securities Exchange (IPSX) on 27 October 2022.

Late last year, the asset manager announced plans to buy the Bridgewater Place, an office-led mixed-use property building in northern England in an £84.5m (€96.2m) deal, subject to a capital raise and listing.

Updating in January, M7 said it had reached a new agreement with the owners of the building in Leeds and was progressing with its plans for the proposed IPO.

In the latest update, M7 said it has created a new company, BWP REIT, to buy Bridgewater Place which has been independently valued at £63m as of 30 August 2022.

BWP REIT said it has agreed to buy Bridgewater Place subject to an IPSX listing and ”reinstatement of the vendor’s debt facility of £38.6m”.

BWP REIT plans to raise £35m through the issue of 35m new ordinary shares at 100 pence each. M7, either directly or through its affiliates, will own 8.57% of the BWP REIT’s share capital after admission.

Bridgewater Place is a large office, retail, and residential mixed-use property completed in April 2007. The 30-storey building was the tallest property in Yorkshire until 2021.

BWP REIT said the funds raised will enable the company to undertake a comprehensive asset management plan for the property which is 92% leased.

Edmund Craston, chairman of BWP REIT, said: “BWP REIT presents a compelling opportunity to create value in an asset that has historically suffered from a lack of investment by undertaking a number of essential and cosmetic asset management initiatives.

“Our aim is to execute a programme of works to create a high quality, fully repositioned and energy-efficient office space with a strong amenity offer which generates long-term secure income from a range of high-quality tenants.”

Richard Croft, executive chairman of M7, said: “This proposed capital raise and Admission, will allow us to fully reposition this high-profile property to create a grade A office asset which meets the needs of the modern and future occupier.”

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