The concept we want to clarify is the explanation I think few people know what OFF MARKET actually means.

An off market asset is an asset that is not for sale, the owner sells it only if someone offers him an interesting sum at the market value of a similar asset. If someone does not understand this, he will never understand the OFF MARKET asset segment.

If a buyer understands this, he will surely understand that there cannot be a mandate and there cannot be a sale price. If there is a mandate and an “exact” sale price, we are not talking about an “OFF MARKET” asset.

HOW ARE THESE ASSETS SOLD?

Directly, between seller and buyer. Or by appointing a few selected brokers to discreetly propose the asset for sale and receive potential purchase requests/offers. The appointment is made with a letter legitimising the chosen broker. The letter is a confidential document that also contains private agreements (commissions) and cannot be sent out left and right, it must remain confidential.

For this reason there are very strict PROCEDURES before disclosing confidential information. To protect hotel employees (knowing that the hotel they work in is for sale would create a lot of problems), because many of the owning companies are public companies (knowing that a major asset is for sale would cause the value of the shares to drop), and also because many CEOs want to keep their strategies confidential.

It is incorrect to say that you have a mandate to sell an asset OFF MARKET, it is correct to say that you have the direct relationship with the seller and it is correct to say that you have legitimate knowledge and commission.

Off Market