London Tunnels Heritage Project Shifts to JP Jenkins Following Euronext Departure
The company behind a major initiative to transform secret Second World War tunnels beneath the City of London into a premier tourist destination has made a strategic move to private securities venue JP Jenkins. This decision comes after the firm delisted from Amsterdam's Euronext exchange, marking a significant shift in its financial strategy.
From Euronext to Private Trading: A Strategic Pivot
Originally established in 2023, The London Tunnels Ltd embarked on a public listing journey in 2024 by floating on the Dutch Euronext exchange. The primary objective was to secure capital essential for converting the long-abandoned tunnels into a museum and what promises to be London's deepest underground bar. However, just one year later, the company reversed course and delisted, citing complications with the tax treatment of its overseas shares. This issue led to the stock being excluded from numerous major trading platforms, severely impacting its visibility and accessibility.
Chief executive Angus Murray explained the rationale behind this move, stating, "Basically we were not an electronically traded stock... there was no other way we could get around that problem." Murray explored various alternatives, including a potential London float, before ultimately opting for JP Jenkins. He highlighted the challenges faced by companies on traditional exchanges, noting, "Companies are finding it very expensive to be on the London Stock Exchange or on Aim. They are finding that the liquidity of the shares that are trading is much lower than they would have hoped or expected."
Murray attributed part of this liquidity issue to shifting investor behaviors in the UK, where retail investors have been increasingly discouraged from direct share investments. "There's not the same enthusiasm for the stock market from individuals as there is in other jurisdictions," he added, underscoring a broader trend affecting market participation.
Endorsement from JP Jenkins and Funding Challenges
Veronika Oswald, Commercial Director at JP Jenkins, welcomed the transition, emphasizing its significance. "The decision to transition from Euronext Growth to trade in London is a strong endorsement of the infrastructure we've built," she said. "It also underlines the continued importance of a London trading presence for growth companies seeking long-term liquidity solutions." This move reflects confidence in JP Jenkins' platform as a viable alternative for companies navigating complex financial landscapes.
Despite this strategic shift, The London Tunnels faces a substantial funding shortfall. According to its latest report, the company remains approximately £80 million short of its target to fully finance the fit-out of the attraction, which is slated to open by the end of 2026. To address this gap, Murray revealed plans to pursue debt financing, targeting investors in Asia and the Middle East. This approach follows the company's redomiciling of its parent entity to the Cayman Islands after delisting, a move aimed at optimizing its financial structure.
The Historic Tunnels: A Future Tourist Magnet
The project centers on the Kingsway Exchange tunnels, an expansive network of 8,000 square meters of passageways located several hundred feet below High Holborn. Shrouded in mystery for much of the 20th century, details of these tunnels were protected by the government's Official Secrets Act due to their wartime role as a base for MI6 officials. This historical significance adds a layer of intrigue to the planned attraction.
Once converted, the site is expected to draw up to two million visitors annually, offering a high-tech immersive experience. Plans include:
- Giant curved immersive screens
- Interactive structures
- Scent-emitting technology
- Hundreds of individual acoustic pinpoint speakers
This innovative design aims to create a unique and engaging environment, positioning the tunnels as a must-visit destination in London's cultural and tourist landscape.
The transition to JP Jenkins represents a critical step in The London Tunnels' journey, as it navigates financial hurdles to bring this historic and ambitious project to fruition. With its blend of historical heritage and cutting-edge technology, the attraction holds the potential to redefine underground tourism in the capital.
