Kempen & Co sees new investors for real estate funds

Kempen & Co have noticed that funds such as Rodamco Europe, Corio and Wereldhave have gotten many new shareholders whom until now had never looked at Stock Exchange quoted real estate. The businessbank has concluded that the trading volumes of these three funds have significantly increased since the announcement that the funds will be incorporated in the MSCI Europe Index per 30 May.

Compared to the trading turnover in the same period of 2002, since 1 May 2003 the turnover in shares of Corio have increased by almost 200 %, Rodamco Europe by almost 100 % and Wereldhave with 75 %. This can be concluded from an analysis by Max Berkelder, research director of the real estate analystteam of Kempen & Co, which he presented at the European Property Seminar in Amsterdam last week. He presumes that since the announcement on May 1st about the incorporation of the three real estate funds in the MSCI Index, large international investors have bought shares of these funds in the following 14 trading days. ‘Those are the large investors, who exclusively follow the index. When MSCI Europe Index incorporates three Dutch real estate funds, then these investors will automatically adapt their portfolio. This has resulted in a whole new ‘investors base’. It is not that these real estate funds are bought because of their typical qualities.’

Source: Kempen & Co

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