A married deal is a pre-agreed transfer of units or shares between two parties.

The transfer or sale is done off-market at a predetermined price and it may be tied with certain conditions, hence the term married deal.

Married deals may be conducted for a number of business-related reasons.

More commonly it is carried out when a party feels that the market is not able to supply or absorb the number of shares it wishes to procure or dispose of.

This may be due to the unusually large number of shares involved, or the fact that the shares constitute an odd lot that is not easily tradable on the market.

A married deal may also be employed in corporate takeover situations, where control of an entity is determined via ownership of its underlying shares.

Besides corporate entities, married deals may also be arranged between individuals, or between an individual and a company.

In a bid to enhance market transparency, respective jurisdictions around the world impose restrictions around married deals.

For example on the Singapore Exchange (SGX), married deals must meet a minimum threshold of at least 50,000 units or SGD150,000 in value.

The married deal must also be reported to the SGX within 10 minutes if it is carried out within market hours, or 30 minutes if executed after market hours.

Married deals are usually carried out via a licensed trading representative from a brokerage firm.

This entry is part of REITsWeek's glossary of REITs and real estate investment terms.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.