Although financing has become more expensive for real estate companies in the past 12 months, transactions are still being carried out, pointed out speakers in the financing strategies panel of CEE Property Forum 2022 in Vienna.
According to Ariel Ferstman, Chief Financial Officer at GTC, financing is still available for property players, but it has become more expensive over the past 12 months. Alternative financing will come back once markets calm down. Thus, it is important to have a balance between capital markets and the banks, mentioned Ferstman.
Dieter Knittel, Head of CEE at pbb Deutsche Pfandbriefbank pointed out the bank has recorded funding volumes of €600 million in the first semester, with the outlook set to remain strong for refinancings by year-end.
Lenders took a stand in front of the bond markets and it is a good sign, commented Marius Persenea, Chief Operating Officer at IULIUS Company. The developer refinanced its retail portfolio in Romania for around €410 million, which was the biggest transaction of this kind carried on the local market to date. Speaking about the crisis in Ukraine, Persenea pointed out that real estate investment and business activity are not shaped by the ongoing war.
Hannes Wimmer, Executive Director, Loan Syndication at Erste Group Bank AG, pointed out that the lending sector is slowly moving to the capital markets. In 2009-2010 there were rates of 4-5% on loans and deals were still carried out. It is not a loss of appetite for banking funding, but it depends on the type of projects developed, he added.
