Jolanta Sarnowska, Director of Real Estate Finance at BNP Paribas Polska, talked to Property Forum about the asset classes considered safe by banks in Poland, the impact of the ESG issues on financing availability and the current stance of the western investment funds.
For which projects do developers currently need financing most often? Which asset classes does BNP Paribas Bank Polska consider to be the most secure?
We are currently seeing a lot of interest in project financing in all segments of the real estate market, although the proportions have changed a little compared to previous years. Fewer new projects are being launched in the logistics and office sectors. In these areas, we most often see enquiries for refinancing or financing the purchase of existing assets.
In contrast, in the case of new projects, we have already seen high activity in the retail and residential sectors for several years. In the case of broadly defined residential projects, investors have become particularly active with an interest in the rental housing market (PRS) and the private student accommodation market. These are relatively young sectors compared to the others but are increasingly and willingly financed by banks.
At BNP Paribas Bank Polska, we are open to real estate financing in most asset classes. Location is key in our assessment and, in the case of rental projects, we also pay attention to the mix and quality of tenants, the length of leases and the investor's experience, among other factors. Regardless of the asset class, if the criteria listed are acceptable to us, we try to adjust the financing structure for the property in such a way that it is as close as possible to our customers’ expectations and, at the same time, in our opinion, safe for the bank.
