Potential to "revolutionise" HK$320bn annual turnover residential property market.
"GFI Group Inc. (GFIG on NASDAQ), a leading inter-dealer broker and Colliers International, a leading real estate consultancy, have partnered in a Hong Kong property derivatives joint venture. The venture, referred to as GFI Colliers, provides broking services in property derivatives to banks, funds and property companies."
A Hong Kong residential property index based on repeat sales will support the market. This index was created and will be maintained by the University of Hong Kong's Department of Real Estate and Construction.
The broking desk at GFI Colliers will be staffed by Stephen Moore and Christiaan van Beek. Mr Moore has worked for GFI in both London and Hong Kong, most recently in Asian dollar bond markets. Mr. van Beek moves from Colliers International's commercial leasing division in Hong Kong.
Piers Brunner, managing director of Colliers International Hong Kong said, "The Hong Kong real estate market is huge - the average annual turnover across all residential areas is around HK$320bn. Colliers International, working closely with GFI, can positively contribute in the development of a derivatives market on property prices, bringing the full depth of our local expertise as much as our access to a global network."
"GFI has been a prime mover in UK property derivatives and we intend to replicate this success in Hong Kong", said, Jurgen Breuer, GFI's senior managing director, Asia. "Derivatives will add a new dimension to this already thriving market. GFI believes they will enable faster, cheaper and more effective execution of asset allocation strategies, short-term hedges, risk transfer and geographical diversification, thus revolutionizing property investment in Hong Kong."
Neither Colliers International nor GFI Group will take a principal position in derivatives trades arranged by GFI Colliers.