What road will the financing trend be heading down in the future? How much influence do the political landscape, interest rate policies, more stringent regulatory requirements and higher liquidity reserves exercise on the financing market? The annual congress saw BF.direkt and IREBS provide first-hand information to answer these questions.
The focus of the congress that took place on April 20 in Frankfurt lay on common types and alternative forms of financing. According to Dr. Hans-Günther Nordhues of Frankfurter K-Bonds AG, preference is given to borrower's note loans, which is inherent within the structure of mortgage-backed investment similar to mortgage covered bonds.
"Pfandbrief banks, CMBS and bonds are the main instruments used by Vonovia", explained Geraald Klinck, member of the residential property group. According to him, bonds with an admixture of bank loans are favored over other types of financing.
The panel session taking place in the afternoon saw the question "Will we need banks tomorrow?" be tackled in more depth. Although the participants were unanimous that depending on the volume, circumstances and risk appetite, there will still be a need for banks and savings banks in the future, they did stress that other types of financing are equally important. The online edition of the Deal magazine dated April 22 reported that the banks will move away from playing unadulterated lenders, instead becoming service providers and implementing alternative forms of financing as a structuring element to complement real estate financing.
Market development was another item on the agenda: "What players are active on the European market and which regulations is the latter characterized by?" In his speech entitled "Financing real estate used for commercial purposes in Europe", Roland Fuchs presented the financing program of Allianz Real Estate. According to the Deal magazine, Fuchs reiterated the following to the congress: "In spite of the changes anticipated, stable and secure income means institutional investors are relying on commercial real estate".
The event's organizers, BF.direkt and IREBS, and the organizers of the Heuer Dialog declared the annual congress premiere to be a success and want to establish an annual event revolving around the topic of real estate financing. All those involved are excited about what is to come.
The complete follow-up report is available on the Heuer Dialogs Website.
(Source: Heuer Dialog and Deal magazine)