ABN and Grosvenor agree first Australia property swap

Grosvenor Group, an international property company, and Dutch bank ABN Amro, have agreed the first Australian property derivatives transaction.

The two-year swap contract is based on the Australian Property Council/Investment Property Databank (IPD) Australian property all-property total return index. The pricing of the transaction remains confidential, but its notional value is less than A$10 million (US$8.2 million).

"The Australian market is at a similar stage to that of the UK 18 months