14. Sep 2018 - Börsen-Zeitung

Real estate is frequently sold “off-market”

Estimated volume of 40 to 50 billion euros in Germany – Nearly all market players interested

Commercial real estate transactions that take place out of the public eye – so-called off-market transactions – have a much larger volume in Germany than has been assumed to date. This is revealed by a report prepared by the analysis company Bulwiengesa on behalf of the off-market specialist HPBA.

This article was originally published in German only. A summary in English is available.

Summary
The off-market transaction segment is said to be worth 40 billion euros – a figure which does not include share deals probably worth an additional 10 billion euros. The most surprising findings from the HPBA Off-Market-Study according to John Amram, Founder and Managing Director HPBA, were the volume of off-market transactions and the fact that nearly all market players participate in them. HPBA itself has ten years’ experience in the segment, accompanying transactions of more than 1 billion euros last year. The most important drivers for such transactions are deal security and discretion, and the survey respondents see very few drawbacks to such transactions. Some institutional investors avoid off-market deals, as they see a lack of auditing certainty, notes Amram. However, many players avoid bidding processes as these cost time and money.