LONDON (Reuters) – Britain’s two biggest property fund managers said on Monday they are ready to spend more on property derivatives, despite a lingering reluctance among many of their peers to trade the fledgling market.
Morley and Prudential, with more 41 billion pounds in real estate assets under management, were backed by two others, including BT Pension Fund manager Hermes, raising hopes that the pioneering market could soon get an extra boost from long-awaited end-user demand.
“We have dealt in property derivatives this year for the first time and are likely to do more this year,” said Nick Mansley, head of property strategy at Morley, which is owned by insurer Aviva and houses the brand Norwich Union.
“We have clients looking to do both sides of the trade,” Mansley said.
