Eres : Digital Library : Works

Paper eres2006_301:
OPEN END REAL ESTATE FUNDS - DIAMONDS OR DANGER?

id eres2006_301
authors Sebastian, Steffen; Marcel Tyrell
year 2006
title OPEN END REAL ESTATE FUNDS - DIAMONDS OR DANGER?
source Book of Abstracts: 13th Annual European Real Estate Society Conference in Weimar, Germany
summary Open end funds for private investors offer in general daily redemption of outstanding shares. A high liquidity of shares is in sharp contrast to the illiquidity of real estate. Therefore, the typical construction for real estate funds which are designed for a broader public is closed ended. Attempts to establish open end funds have regularly let to crises comparable to bank runs, e.g. the RODAMCO case in the Netherlands, or the actual crisis of German open end funds. Liquidity transformation as a typical function of banks also bears inevitably to the danger of bank runs. Therefore we offer a framework based on the recent works in bank theory of Diamond/Dybvig 1983, Allen/Gale1998, and Diamond/Rajan 2001 which examine whether open end funds can represent a stable investment design for real estate. Furthermore we show that the open end construction delivers a monitoring function with respect to the fund managers. Full paper available at www.real-estate-finance.de.
series ERES:conference
type normal paper
discussion No discussions. Post discussion ...
ratings
session 2-A
last changed 2008/11/01 09:47
HOMELOGIN (you are user _anon_627704 from group guest) Powered by SciX Open Publishing Services 1.002