Financing4Warehouse’s Post

30% more loans to buyers of private homes in Germany. This will encourage further investment in residential development, boosting building activity. Non-German institutional lenders have an opportunity to benefit from this growth. Find out more: www.pihub-pi.com https://lnkd.in/eChRcyQM #realestatedebt #realestate #infrastructuredebt #germanrealestate #privatedebt #debt

Marco and I are pleased to share our latest perspective on real estate private debt as an institutional asset class, featured in the 2024 FAP Group Real Estate Private Debt Report – the industry-leading publication establishing transparency in this market segment for already 10 years. Read the report to find out what the market sentiment is and where we think particular opportunities lie. #realestatedebt #REPDreport #realestateinvestmentbanking #VICTORIAPARTNERS

Earlier this week, I had the opportunity to converse with Linnea Bolter at Dagens Industri about the challenges facing many companies, particularly those in the real estate sector. Although the article is behind a subscription wall, I'd like to share my insights. Stricter capital adequacy requirements are driving up loan costs, prompting banks to explore ancillary services such as pension solutions, credit cards, and leasing. During the onset of the pandemic in 2020-2021, Sweden's National Bank (Riksbanken) bolstered lending by Swedish banks with approximately 165 billion SEK. While interest rates are typically hedged for three years, the hedging for these loans is now expiring. Meanwhile, interest rates have surged, while inflation has not risen as much. Consequently, companies whose expenses, such as interest costs, outweigh their income linked to inflation may face significant deficits. This scenario is particularly challenging for real estate companies. In cases where restructuring is necessary, both lenders and borrowers must carefully evaluate their options. Bankruptcies are likely to erode value, so legal and structural considerations are vital in any restructuring involving distressed debt. https://lnkd.in/diCcCMNu

🚨"Commercial real estate remains one of the top risks," warns BaFin President Mark Branson.🚨 While some market players are cautiously optimistic about Germany's commercial real estate sector 📉🏢, BaFin President Mark Branson begs to differ. His concerns? The financial sector’s exposure to real estate risks remains high, and the bottom of the crisis may still be far away. 🔎 Key Risks Identified: 📌 Banks specializing in real estate financing must increase their provisions in 2024 compared to 2023. The combination of loan defaults and declining collateral values poses a serious threat. 📌 Insurers & pension funds that heavily invested in real estate equity & debt are now facing losses. The collapse of Signa is just the tip of the iceberg 🧊. 📌 Open-ended funds are struggling with overvalued assets, risking liquidity shortages amid continued capital outflows. 💡 With over €100 billion in commercial real estate loans up for refinancing in 2024-25, higher interest rates and market volatility could make things worse. 💬 What’s your take?  Happy to discuss, let's meet in Cannes at #MIPIM #RealEstate #Finance #RiskManagement #Germany #CRE #Investing 👇 https://lnkd.in/e-xMZCmC.

Raiffeisen Bausparjahr 2024 Exceeds Expectations!   I am happy to share the remarkable achievements of 2024. We have successfully closed 224,000 new building savings contracts, solidifying building savings as one of Austria's most trusted saving methods.   The substantial growth in our building savings deposits, which reached €7.1 billion by the end of December 2024, compared to €6.7 billion at the end of 2023. This impressive increase, with a stable number of 1.3 million contracts, underscores the strong confidence Austrians have in our saving products. The combination of attractive interest rates, state premiums, and security continues to resonate with our savers.   Moreover, Raiffeisen Bausparkasse Gesellschaft m.b.H. provided nearly €750 million in financing last year. Despite a general caution in acquiring and building new properties, the demand for financing met our expectations. Moreover, the number of financings for renovations and upgrades far exceeded those for new construction. 31% of the financings were for existing property improvements, while only 8% went towards new residential construction. This trend towards upgrading existing properties is a positive development from a climate protection perspective.   I would like to thank all the customers for their continued trust and support. It is a privilege for us to be a product partner of Austrian Raiffeisen Banking Group and to finance the dreams of their customers. Together, we are building a secure and sustainable future.   Christian Vallant, Markus Tritthart, Andrea Pelinka-Kinz

Sharing his knowledge on the European real estate market, Hans Selleslagh, CFA, CMT, an expert spokesperson for Freedom24, was recently featured in Extra ETF. Extra ETF is a German-based financial platform that covers topics related to ETFs and other relevant investment products. According to Hans, with the European Central Bank set to cut rates in 2024, the market is up to recovery, offering exciting opportunities for investors 🌍 “A key trend is the increased focus on sustainability and green construction, with a growing use of energy-efficient technologies and sustainable building materials”, shares Hans. Selleslagh highlights how high mortgage rates are currently slowing down home purchases, but with rental demand surging, the real estate market still holds promise. Looking ahead, he predicts a gradual decline in mortgage rates, creating new investment avenues in both rental and homeownership markets🏢 For investors, this shift in the real estate market opens up opportunities through real estate ETFs, which provide diversification across sectors such as residential, commercial, and industrial properties. These ETFs offer exposure to a variety of real estate markets, making them an appealing option for those looking to participate in the sector's growth without directly owning property. Read more on Extra ETF 🔽 #Freedom24 #RealEstate #EuropeanMarkets #MarketInsights #RealEstateInvestment #FinanceNews

The Sale and Leaseback Landscape in Europe: A Promising Future Current State and Recent Trends The sale and leaseback (S&LB) market in Europe has witnessed significant growth and evolution over the past decade. In 2021, the European S&LB transaction volume reached €8.4 billion, which was 8.5% higher than the five-year average, despite an overall 18% drop in investment activity. The logistics sector has been a driving force behind this growth, with S&LB activity in this sector reaching a record €3.4 billion in 2021, approximately 15% higher than in 2019. Several factors have contributed to the rise of S&LBs in Europe, including accelerated adoption across various company sizes and profitability levels, strategic financial engineering by private equity firms, the evolving debt landscape, high owner-occupation rates, and private equity optimization strategies. ### Future Forecast and Drivers The future of the European S&LB market looks promising, driven by several factors: 1. **Corporate Credit Crunch**: The ongoing dislocation in the European corporate credit market, with tightening lending standards and risk-averse banks, could drive an increase in S&LBs as corporates seek alternative forms of financing. 2. **Economic Uncertainty and Liquidity Needs**: As companies navigate economic headwinds and potential recession risks, the need for liquidity may prompt more businesses to explore S&LBs as a financing solution. 3. **Attractive Pricing and Yields**: S&LB transactions are typically priced at cap rates ranging from 7% to 9%, offering an attractive cost of capital for property sellers. 4. **Sector-Specific Opportunities**: Sectors like logistics, healthcare, and technology may present attractive S&LB opportunities due to their resilience and growth potential, attracting investor interest. 5. **Emphasis on Sustainability and ESG Compliance**: As environmental, social, and governance (ESG) considerations become increasingly important, S&LB transactions may prioritize energy-efficient and sustainable properties to align with ESG goals and regulatory requirements. 6. **Lower Interest Rates**: Central banks are anticipated to initiate policy rate cuts by mid-2024, albeit at a more measured pace than the recent rate hikes. Lower interest rates typically act as a stimulant for real estate transactions, as reduced financing costs render transactions more attractive for investors, bringing more buyers to the market and driving economics for potential sellers. 7. **Resurgence in M&A Activity**: With global rate cuts expected in 2024 and private equity funds holding significant dry powder, dealmaking is expected to pick up, potentially leading to an increase in S&LB volume as a result of M&A transactions. The S&LB market in Europe is expected to remain robust, driven by the need for alternative financing solutions, attractive pricing, sector-specific opportunities, and the anticipated resurgence in M&A activity and lower interest rates.

The pace and scale of de-equitisation is clear. It is essential that we address the demand side, such as through pension reform, UK ISA, removing stamp duty and establishing a wealth fund to ensure the health of the UK equity market. Key themes:  → Heightened activity – Bids announced YTD and still live amount to an equity value of £43bn.  → Going up the market cap – Of the 32 transactions announced in 1H, 17 were in the FTSE 350.  → Increase in pace – There has been an acceleration in both the number and scale of transactions over the last few quarters.  → More corporate buyers - Corporate buyers (72%) have dominated in 2024 as the rate environment and economic outlook have become clearer, demonstrating the value of UK companies.  → Multiple offers – There have been 6 competitive situations YTD (Alpha, C&R, DS Smith, Hipgnosis, Spirent and Wincanton) and 8 raised offers. → High premiums – The average premium thus far in FY24 is 40%  → Overseas appetite – Overseas bidders are c.60% of the total YTD.   → Sector focus – Tech and Real Estate have been the most active sectors.  → The ones that got away  4 notable offers were rebuffed (Currys, Direct Line, Elementis and XP Power). Read the full article here: https://lnkd.in/ekHasDaX

RESEARCH: In third quarter 2024, REITs demonstrated well-structured debt, according to Nareit’s REIT Industry Tracker. Leverage ratios proved to be moderate, with debt-to-market assets at 30.7 percent. The average interest rate on total debt was 4.1 percent. Some 79.5 percent of REITs’ debt was unsecured, and 93.1 percent of REITs’ debt was at a fixed rate.

In a recent article in Hospitality Investor, our Co-Head of Real Estate Debt, Ludo Mackenzie, spoke with Isobel Lee about the growing confidence among hospitality lenders and investors regarding market conditions. Ludo expressed measured optimism about the future, anticipating an increase in hotel transaction volumes and, consequently, lending volumes: “As the environment improves, lenders become more confident. Risk appetite recovers, and debt capital becomes more abundant and cheaper.” Read the full article here: https://bit.ly/48M6FWI