Whilst ClosedTrade is viewed as an industry disruptor, its focused intention is to deliver greater efficiencies and alignment within the market. The commercial property market is one operated by professional, experienced investors ( buyers and sellers ) who are not prejudiced by transacting directly on a peer-to-peer basis. Prop-tech provides the ideal mechanism to match investors with opportunity and traders with investors.
SA REITS have a significant tail of assets to trade out of, these were estimated to be worth around R15 billion in December 2017. Within the SA market, sellers of commercial property are hesitant to provide agents with sole mandates; effective cause on an open market mandate being the preference. Property funds frequently trade “off-market “ and directly with each other. ClosedTrade has created a single “off-market” forum to place assets directly in sight of SA capital and in so doing to attract “best bid” value from competing investors. What ClosedTrade does is create a closed, secure, B2B environment for the trading of assets directly by and between pre-qualified investors.
ClosedTrade’s entry into the UK and European markets resulted from slightly different fundamentals. The sale of assets in the UK and European capital markets are dominated by mandated sellers agents. SA capital is an increasingly important player in the UK and across Europe, though agents internal P&L and or fee share structures between jurisdictions inhibit the full and free sharing of opportunity with SA investors through local operations. ClosedTrade generates velocity indirectly matching the demands of SA capital with UK/European opportunity, whether on or off-market.
The ClosedTrade “off-market” platform is funded by a single sponsor resulting in a zero cost offering to participants. This gives ClosedTrade the independence to determine the criteria upon which participants and assets are accepted, thus ensuring standard of product, investor credentials and confidentiality. The sole sponsor will have confidential access to ClosedTrade market data which they may utilise only for their own internal benefit and that of the participating investor. The sponsor will be legally prohibited from distributing any information and or from utilising such for any purpose other than its core business activity which activity does not compete with the real estate business of the ClosedTrade participant.
ClosedTrade has started with the launch of its “off-market “ trading platforms in South Africa and UK/Europe. Rapid expansion of the offering, capability and jurisdiction is anticipated.
I hope that you find ClosedTrade to be a welcome addition to your business and its activity. Should you wish to discuss any aspect of this business or related opportunity within the real estate sector, please contact me.
M: +27 82 060 5355
The Alternate Property Exchange – ClosedTrade – is a Docklands Properties product. Docklands is the operating incubator for my real estate interests and activities.
Together with it’s local and international partners Docklands is building and delivering on three service platforms- Docklands Trading, Docklands Consulting and Docklands Technologies. [ www.docklands.website ]