The property industry has been facing significant challenges in recent years. These have caused intense uncertainty and stimulated debate on what the future holds. This uncertainty is not simply a product of traditional boom and bust economic cycles, but the herald of a fundamental market restructuring. Developers have felt the effects of this restructuring since 2008 when project finance came to a grinding halt for most.
It was from these conditions that the concept of the exchange was born to provide a solution to the industry.
You may be wondering why we’ve developed an exchange for this purpose, and not another type of financial institution, so we’ll briefly explain how the exchange concept was first born and what it achieved and why we think this model should be reborn for this purpose today;
In 1698 stockbrokers began trading from Jonathan’s Coffee-House in London where they started listing the prices of a few commodities. By 1773 150 brokers formed a club creating the first self-regulated exchange.
Over in the US in the late 18th century, there was a buttonwood tree at the foot of Wall Street under which traders and speculators would gather to trade securities and the New York Stock Exchange was born. They created their own membership with a gentleman’s rule book to avoid “manipulative auctions”.
Both in the UK and the US, traders found a fair and mutually beneficial way of trading that still continues today. Other financial institutions have faced considerable challenges, but the stock markets persist as an equitable and efficient way to connect capital with investment opportunities.
A stabilising force such as this has the potential to change the face of development finance going forward.
It therefore has become our aim to bring liquidity to the property industry whilst raising standards and reducing risk where possible. We have become the world’s first property investment exchange connecting a wide range of professional, international investors with a diverse portfolio of high-quality development and real estate opportunities.
Today the EIE solution matches projects to funding using a sophisticated digital platform. The platform was developed and is currently supported by a team of top industry professionals with backgrounds in property, investment, banking, IT and business solutions. This team works with our clients to provide the stabilising force the market needs.
The expert team behind EIE understands the needs of both developers and investors and can select projects suitable for investment requirements. Our aim is to create an exchange that will encourage co-investment when necessary and bring significant, stabilising change to a complex asset class, driving down risk and raising returns.