Prupim has executed a series of UK property derivatives totalling GBP100m with the Royal Bank of Scotland.
The property derivatives were total return swaps, based on multiple UK IPD sub–sectors.
It worked closely with Icap Property Derivatives as broker.
“Prupim has completed the largest series of sub sector property derivative transactions ever as part of a portfolio rebalancing. Icap’s focus on developing property end-user participation in this market has been particularly valuable in this process. We take the view that this kind of activity can be a valuable device in managing risk in an institutional commercial property portfolio," says Will Robson (pictured), property derivatives director at Prupim.
“We have long believed that property specialists and institutional investors will be even more attracted to the benefits of property derivatives as liquidity grows in the sub-sectors. This transaction is a further example of Prupim leading the way in the development of the property derivatives market,” says Paul Rostas, head of property derivatives, Icap.
