More than €1bn of trades have now taken place via PropertyMatch, the joint venture between CBRE and brokerage firm GFI Group that provides a screen-based secondary trading platform for unlisted real estate funds across Europe.
The firms say that a flurry of activity in Q1 2012 produced 48 trades worth over €270m in total, a 240% increase on Q1 2011 and equivalent to the total volume of trades undertaken by the platform in its first year of operation. Two separate trades were each worth over €50m.
The UK recorded the highest number of trades in Q1, accounting for two-thirds of the total trading volume, while continental European funds accounted for a third.
PropertyMatch said in a statement that the consistent rise in volumes highlights increasing investor demand for transparency, including the desire for clarity on current fund unit pricing.
“Transparency is no longer an afterthought but is demanded by investors. The UK is the most advanced market in this respect. However, continental Europe is making headway,” said Michael Levi, head of indirect property at GFI Group.
“Furthermore, as we approach the formal adoption of Solvency II, we have no doubt that clear market pricing will become increasingly important across the region. And we expect both the volume and number of trades to continue in an upward trajectory.”
