Mailbox REIT will cease to exist as a REIT when it leaves the International Property Securities Exchange (IPSX) next month.
In September, IPSX said it had commenced the orderly wind down of its operations as it no longer had “sufficient financial resources to operate as a Recognised Investment Exchange in accordance with FCA regulatory capital requirements”.
In the wake of the announcement, Mailbox REIT said it would seek an admission to an alternative exchange, but after “careful consideration” the board of the REIT has decided to cancel the admission of its ordinary shares to trading on IPSX and not seek a listing on an alternative exchange for the time being.
On its delisting from IPSX the company will exit the REIT regime as its shareholding structure does not qualify for REIT status under the new REIT qualification rules which are expected to be introduced next year.
The board said it had consulted with tax advisers and does not believe that the loss of REIT status will result in any material additional tax liability.
It added that the loan secured against the Mailbox building remains in default and the company is exploring a “number of avenues with its investment manager to resolve the issue, including a potential refinancing”.
The board will write to shareholders shortly explaining its decision and the timetable for cancellation, with the intended cancellation to occur by mid-November.
