CBRE’s unlisted fund trading platform notched up €270m of deals in Q1
PropertyMatch, CBRE’s trading platform for secondary units in unlisted funds, has made more than €1bn of trades.
The milestone was reached after an exceptionally big volume was traded in the first quarter of this year, including two much larger-than-average-size trades of around £50m each.
One was a single €58m trade in Henderson’s European Outlet Mall Fund, at December INREV net asset value. The other was a £50m trade in a UK fund.
Total deal volumes in Q1 2012 were €270m in 48 trades. The service, which provides real-time pricing, was set up two and a half years ago and the Q1 2012 figure is equivalent to the total volume traded in 2010.
Paul Robinson, a director in CBRE Real Estate Finance, said the clarity on fund unit pricing that PropertyMatch provides was “driving confidence and greater interest in the unlisted real estate funds market.
“We have seen strong growth in PropertyMatch volumes since its launch, indicating an appetite for transparency to drive liquidity. The financial crisis bought this demand into relief.”
The UK has the highest secondary trading volumes, CBRE said continental trading was slowly picking up and accounted for a third QI 2012 trades, although the Henderson EOMF deal skewed that figure.
Robinson said there were still quieter months, but monthly deal volumes were averaging £70m-£80m in 16 deals. “There is enough interest to believe it will continue at that rate,” he added.
Other European funds that have traded through the platform include the Pradera Central & Eastern Fund. Hermes’ unit trust is the most frequently traded fund so far this year.