M7 mulls a £300m IPO in potential boost to London stock market

Courtney Goldsmith
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The rise in online retailing has triggered a boom in the industrial property sector (Source: Getty)

Property firm M7 has called in bankers to consider a number of strategic initiatives for the company, including a £300m initial public offering (IPO) of a portfolio of its properties.

M7 was established in 2009 and initially focused on the UK's multi-let industrial sector, and a float would help it raise money to invest in multi-let regional assets in the UK.

Due to the boom in online retailing, demand for industrial floor space is rocketing.

In addition to leasing to big, international household retailers, M7 would also serve tenants like local tradespeople who have traditionally proved resilient.

​“We can confirm that we have appointed Barclays and Akur Capital to consider a number of strategic initiatives, including a possible IPO, but it is too early to comment further at this stage," a spokesperson for M7 said.

M7, which manages more than 800 retail, office and industrial properties worth around €4.1bn (£3.7bn), specialises pan-European, regional, multi-let real estate, a market which it says is neglected due to small individual lot sizes and the management-intensive nature of the underlying assets.

A float would likely occur at the end of the third quarter or early in the fourth quarter.

Read more: Oh, when the floats come steaming in: Kettle safety firm plots £190m IPO

The £300m float would be one of the largest IPOs in the UK this year.

In the second quarter, 18 companies raised £4.2bn through London stock market floats, according to accountants EY, with the top public listings being Allied Irish Banks at £2.62bn, haulage firm Eddie Stobart at £393m and bank tech company Alfa Financial Software at £250m.

The UK's IPO market was boosted by a stronger global economic environment despite ongoing uncertainty and currency volatility.

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