The growing importance of secondary market activities for open-end real estate fund shares in Germany

Philipp Gerlach and Maurer Raimond

ERES from European Real Estate Society (ERES)

Abstract: Shares of open-end real funds are typically traded directly between the investor and the fund management company. However, we provide empirical evidence for the growth of secondary market activities, i.e., the trading of shares on stock exchanges. We find high trading in situations when the fund management company suspends the redemption of shares but lower trading when the issue of shares is suspended. Shares trade with a discount when the fund management company suspends the redemption, whereas shares trade with a premium when the fund management company suspends the issue. We also find evidence that secondary market trading activity is increasing since German regulation introduced a minimum holding period and a mandatory notice period for open-end real estate funds.

Keywords: NAV-Price-Spread; open-end real estate funds; Secondary market; Trading Restrictions (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2019-01-01
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2019_205

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