Deutsche Bank and Eurohypo, a real estate specialist, have launched a property derivative swaps deal, the first of its kind in the UK. The £...

Deutsche Bank and Eurohypo, a real estate specialist, have launched a property derivative swaps deal, the first of its kind in the UK. The £40 million ($75 million) contract for difference deal allows the client to receive all the benefits of a share or having exposure to the property market without the transfer of actual bricks and mortar.

The deal is likely to appeal to investors as it avoids the direct buying into a very illiquid market by using derivative structures. This CFD is regarded as putting the UK on the way to being the first country with a derivatives market in commercial property. The US and Sweden are also considering setting up such markets.