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16. Februar 2012     Print Print 

Global unlisted secondary real estate fund market to ht $7 billion in 2012

Based on key investors’ confirmed divestment and investment intentions, Jones Lang LaSalle Corporate Finance (JLLCF) estimates that the global transaction market for secondary real estate funds is set to grow by up to 30% in 2012 as institutional investors are increasingly considering the secondary market as a viable exit route.

In 2011, $5.5 billion of secondary market real estate opportunities transacted globally, out of a total of $14 billion of offered product. This was an increase of 55% compared to $3.5 billion of transacted volumes in 2010. Over 30% of transactions in 2011 took place in the UK.

The upward trend in global transaction volumes for 2012 will be driven in part, by the growing prominence of secondary market specialists and increased familiarity from the wider institutional investor community.

Coupled with improved transparency in markets such as Australia, Asia and the United States, the maturity of funds in emerging markets has enabled investors to price opportunities more accurately. Whilst pricing will always vary widely depending upon a fund’s characteristics, JLLCF have also estimated the ranges of pricing indications by risk profile based on funds that JLLCF have intermediated on or provided an opinion for in the last three years.

Ashley Marks, Associate Director, Corporate Finance, Jones Lang LaSalle said:
“The global unlisted real estate secondary market matured throughout 2011. It is now more dynamic and attracting more scrutiny than ever before. Whilst the Eurozone crisis impacted pricing and volumes in the second half of 2011, the UK maintained its unique status as the global leader in the growing secondary market activity. There is improved transparency in markets across Australia, Asia and the United States of America which we expect to feed through into increased volumes in 2012.”