European non-listed property funds have seen EUR 1.1 bn of secondary trades in the past 12 months, according to the preliminary results of a study by industry body Inrev.
European non-listed property funds have seen EUR 1.1 bn of secondary trades in the past 12 months, according to the preliminary results of a study by industry body Inrev.
The Liquidity Provisions Study found that trades amounting to EUR 1.1 bn took place in 18 funds over the period, while another EUR 230 mln of trades were in the pipeline. In addition, the market saw EUR 700 mln of redemptions in 12 funds, with a further EUR 580 mln in the pipeline.
From the study sample of 160 funds representing a gross asset value of EUR 93 bn, just EUR 6.6 bn do not offer investors any ability to trade or redeem. The majority of funds offer investors liquidity but so far these provisions have not been required by investors, according to the study. 'However, we have seen institutional investors in the UK and Germany exercising redemptions in the UK and there is more likelihood of investors considering secondary trading as they look to rebalance their portfolios in changing market conditions,' said Mike Clarke, head of Property Distributions at Schroder Property Investment Management and chair of the Inrev Secondary Markets Committee.
