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News release

Sydney

Jones Lang LaSalle launches Asia Pacific secondary market bulletin

New bulletin connects buyers and sellers of secondary interests in real estate funds


SYDNEY, 7 AUGUST 2012 – Jones Lang LaSalle has launched a new trading bulletin for buyers and sellers of secondary interests in co-mingled real estate funds. The new Secondary Market Bulletin (SMB) delivers a more efficient and transparent way to transact on the secondary market by providing a marketplace for unlisted real estate funds.

 
“The SMB is an evolution in the indirect real estate market, increasing transparency, improving liquidity and will broaden the investor universe over time,” said John Wills, Director of Corporate Finance – Australia at Jones Lang LaSalle.
 

The SMB facilitates authorised sellers to stipulate pricing requirements and desired volume and match them with buyers; together with affording buyers the opportunity of listing desired purchases.

With its first deal already completed and over US$250m of secondaries available, the SMB is attracting considerable interest from the investor community.
 
“There is an increased desire for investors to participate in the secondary market due to the opportunities flowing from the merger of superannuation funds, fundamental shifts in vehicle allocation, and the increased need for liquidity in a risk on / risk off environment,” said Mr Wills.
 
The launch of SMB comes at a time when the Asia-Pacific corporate finance markets are showing positive growth.
 
Mr Wills said, “There has been an increase in the corporate finance business with considerable funds flowing to Australia off the back of attractive risk adjusted returns. Interestingly, we are closing a number of mezzanine debt opportunities in Australia by matching Asian capital with local lenders. However the capital raising environment for funds remains constrained and is anticipated to remain so for the rest of 2012. 
 
“Intriguingly, there is investor interest higher up the risk curve in the value-add arena, off the back of historical spreads and active management expertise,” said Mr Wills.
 
The Asia Pacific SMB will be managed in the Sydney office by John Wills, Director of Corporate Finance and Toby Daniel, Associate Director of Corporate Finance. The Asia-Pacific team will work closely with their counterparts in Europe on global secondary opportunities as well as cross regional secondary transaction flows.
 

The European secondary market team, led by Ashley Marks in London, has already transacted over US$1bn of secondary market transactions in Europe and the US. With the addition of an Asia-Pacific platform, Jones Lang LaSalle provides a truly global service.

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