An eye on Europe
Property derivatives have not yet been traded in continental Europe, but with regional commercial property indexes gaining credibility, dealers say it is only a matter of time before derivatives on real estate expand beyond the borders of the UK. By John Ferry
The UK property derivatives market is slowly taking shape. The first 'pure' property swap was transacted at the end of last year between Canada's TD Securities and an unnamed property company, while Deutsche Bank and German real estate specialist Eurohypo completed a $40 million total return swap in January on behalf of British Land and Prudential Property Investment Managers.
A burgeoning structured product market has also developed, with Barclays Capital and UK finance company Protego Real
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