While other parts of Europe suffer, Germany's lending market is growing.
So many talks at MIPIM are about financing – how to get loans, if private equity is an alternative to the classical lending. Some developers talk pretty openly how difficult it became with the banks.
Looking to Germany as “Country of Honour” however, there are still some opportunities. Michael Kröger, General Manager for International Real Estate Lending at Frankfurt-headquartered bank Helaba, stated at MIPIM for MIPIMWorldblog: “From Helaba’s perspective, being open for business and actively pursuing a growth strategy, the dry out of lending markets offers opportunities to win attractive clients and new business. On the other hand, a well functioning lending market is also vital for functioning real estate markets. Although for some southern and eastern european markets the situation is quite severe. In Helaba’s target markets outside of Germany, i.e. in Europe the UK, France, Scandinavia and Central Europe, we still see sufficient liquidity, both on the investment and the lending side.”
Not only does it sound good, it is proven as well. Among the recent pan-European financing of Helaba for example is the “Silesia shopping center” in the Polish city of Katowice – developed and owned by Austrian investor Immofinanz – present at the Austrian stand in Espace Riviera. Their Board Member Manfred Wiltschnigg, when asked about his feelings about Germany as “Country of Honour”, told me: “Germany has deserved that honour. Being the strongest economy in the euro-zone Germany became the leading European nation. It is great that Germany is such a diversified country. Different locations offer different opportunities for investment. From Austria we like to look to our big neighbor – and to invest their as well.” And we like to hear so. Thanks, Manfred.