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Property experts anticipate increase in alternative financing deals (news with additional features)
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DGAP-News: BF.direkt AG / Key word(s): Real Estate/Financing Property experts anticipate increase in alternative financing deals – Successful debut of the Annual Congress on Financing for the Real Estate Industry – Christian Wulff credits German real estate sector with high stability – Increase in financing costs Stuttgart/Regensburg, 21 April 2016. The first Annual Congress on Financing for the Real Estate Industry in Frankfurt met with an enthusiastic reception from experts in the real estate and finance industries and has been assessed as a success story by its two organisers, BF.direkt AG and the IREBS International Real Estate Business School. The guest speaker of the Financing Congress, former State President Dr h.c. Christian Wulff emphasised Germany’s role in a world of upheaval and change. Accordingly, notions of a relapse into nationalism, terror or economic war have led to “everyone being seriously concerned”. Wulff perceives a possibility that Germany may well change from a subject into an object of global policy, emphasising that steps will need to be taken to counteract this development. With reference to the real estate industry, Wulff highlighted that Germany’s decentralised organisation with numerous centres, cities and also rural regions represented a stability factor. He indicated that foreign investments reflected the attractiveness of Germany as a location. Wulff refers to the real estate industry as a whole as an attractive sector. At the Annual Congress, discussions included the subject of higher funding costs, resulting in an increase in alternative financing transactions. The reasons for this, above all, are ever stricter regulatory requirements, such as on minimum equity required, leading to more restrictive lending even though the demand for financing activities remains high. Despite the continuing low-interest environment expected by the participants, the level of financing costs is expected to rise. Francesco Fedele, CEO of BF.direkt, forecasts an increasing significance of alternative financing deals. “Alternative financing arrangements emerged from their niche a long time ago; today conventional financers perceive then as a welcome complement within the scope of collaboration in a spirit of mutual partnership. We expect an increasing division of financing arrangements also in terms of the need to spread risks,” explains Fedele. Claudia Hard from Greenberg Traurig Germany adds that alternative financing deals can also contribute towards market stability. In the course of a panel discussion, the experts agreed that the financing market for real estate will not be able to do without banks in future either, despite the increase in alternative financing and pressure on margins. However, there will be a further shift in the role of banks away from pure lenders in the direction of service providers, who will deploy alternative financing as a supplementary structuring element of real estate finance. Ulrich Zick from Corpus Sireo wishes for banks to act as watchmen with regard to credit standing, especially since the risk is no longer adequately priced in times of zero interest rates. Gerald Klinck from Vonovia SE is currently seeing bonds as favourably priced financing instruments for companies on the capital market due to their low non-recurring and regular costs involved. Another topic dealt with at the Congress was market development. Prof. Dr Steffen Sebastian from IREBS and presenter of the event explained the situation as follows: “Even though an interest trend reversal might have drastic impacts on the real estate and financing market, substantial interest rate hikes are highly unlikely in the next several years. Accordingly, the biggest risk for the industry can currently be found in changes in regulation. Whoever is not dependent only on banks for financing needs will have a clear competitive edge in this respect.” Frank Jeschke from LBBW also perceives regulatory changes as triggers for change in the financing environment in the next few years. In spite of the expected changes, institutional investors appreciate investments in commercial properties thanks to the stable and certain income generated, emphasised Roland Fuchs from Allianz Real Estate at the Annual Congress. Following this successful debut, the two organisers, BF.direkt and IREBS, plan to establish the Annual Congress on Financing for the Real Estate Industry as a permanent annual event on the topic of real estate financing. “The quality of the presentations and keynote speakers, the positive feedback from the participants as well as the brisk exchange of opinions at this event show that an establishment as an annual forum is more than sensible for this industry segment and actually closes a gap in the existing offering of events of this kind,” says Francesco Fedele, CEO of BF.direkt AG, in summing up. “At the new Congress, the latest developments and trends will be presented each year and dealt with at length in personal in-depth discussions. The successful debut presents a sound base for further development of the concept,” adds Prof. Dr Steffen Sebastian from IREBS. Heuer Dialog was responsible for organising the event. BF.direkt AG will publish a current assessment by the financing experts of the market for real estate financing early next week with its BF.Quartalsbarometer for the second quarter of 2016. Photo reference: A photograph was taken for this press release with Francesco Fedele, Christian Wulff, Prof. Steffen Sebastian: http://www.dgap-medientreff.de/unternehmens-meldungen/?cdn=bfdirekt (German language) About BF.direkt BF.direkt AG is an independent specialist for financing residential and commercial real-estate projects. As one of the leading financing consultants, it develops innovative financing strategies and finds suitable financing partners in this field. In the process, the clients of BF.direkt stand to benefit from the numerous connections with big, special and private banks, capital market services providers, insurers and specialised funds as well as with investment companies for borrowed funding, mezzanine and equity capital. About IREBS IREBS International Real Estate Business School at the University of Regensburg is Europe’s biggest centre for the real-estate sector and comprises ten law and economics chairs and professorships as well as 15 honorary and guest professorships. The IREBS deals with advanced training of budding managerial staff and experts at the follow locations: Frankfurt, Eltville (Rheingau), Berlin, Munich and Hamburg. With its wide array of services on offer, the IREBS International Real Estate Business School is part of the internationalen elite in the university field of the real-estate sector. Contacts BF.direkt BF.direkt PR-Kontakt IREBS International Real Estate Business School +++++ Additional features: Picture: http://newsfeed2.eqs.com/bfdirekt/456305.html Subtitle: Francesco Fedele, Christian Wulff, Prof. Steffen Sebastian auf dem Jahreskongress Finanzierung für die Real Estate Industry 2016
2016-04-21 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |