Interdealer broker Tullett Prebon and Synrex Ltd have formed a joint venture to develop a new institutional all-to-all real estate trading portal for the issuance and secondary trading of indirect real estate risk across a range of instruments.
The joint venture between Synrex and Tullett Prebon will be called tpsynrex Ltd.
The web-based trading portal aims to offer real estate investors a new level of trading efficiency and liquidity, enabling them to trade risk directly, but anonymously. Liquidity will be concentrated in a series of quarterly web based auctions on the tpsynrex platform.
The platform will launch a new and innovative series of Euroclearable securities, the Trium SYNREX Bull and Bear Range notes, which will be issued in conjunction with Trium Capital. These notes will lower the barriers to entry for investors wishing to trade synthetic real estate exposure.
The platform will also host daily secondary market auctions for the issued Trium SYNREX notes plus a range of other indirect real estate instruments including Property Derivatives and REIT products.
These notes will be linked to a range of commercial and residential real estate indices with different sectors and maturities. Investors wanting either long or short exposure will, for the first time, be able to gain index-linked real estate exposure via transferable securities rather than through derivatives.
Stephen Ashworth, Founder and CEO of Synrex, says: “As an asset class real estate is often viewed by investors as being inefficient and illiquid. In other asset classes we see investors demanding low cost, passive investment strategies and liquidity - both of which have been lacking from real estate. The creation of tpsynrex, as a new efficient trading venue, will allow real estate investors to access liquidity supplied directly by other real estate investors.
“Tullett Prebon is the perfect partner for us to bring this new initiative to the real estate investment community, with its strong reputation, depth of resource and cutting-edge technology. We are very excited by the opportunity and look forward to working with the team at Tullett Prebon.”
Steph Duckworth, Managing Director of New Business EMEA, Tullett Prebon, adds: “We are very pleased to announce the partnership between Tullett Prebon and Synrex Ltd. This new initiative in the real estate market increases the scope of service and product that we can offer our current and future clients. Synrex Ltd brings innovation and expertise in both the capital and real estate markets and we look forward to working with them to develop this new business.”