Grosvenor, a UK-based international real estate group, has bought the first derivative based on the property market in Italy as the fledgling asset class gains popularity in Europe.

The trade was structured by BNP Paribas and interdealer broker Icap and is a total return swap linked to the Italian Property Index that allows Grosvenor to manage its exposure to the real estate market. The instrument carries none of the high transaction costs associated with owning a physical asset, such as agent fees and legal fees.