Property Investor Europe & Property Finance Europe

Market-based `Brady' approach needed to meet CMBS challenges, says ING's Rang

Given the overhang of real estate debt, in particular CMBS, a Brady Plan equivalent could be an interesting solution, says Michiel Rang, Head of Europe and Asia for ING Commercial Banking in a PIE Guest Column. "If a way could be found with government backing to discount this debt to reflect long-term underlying property values and avoid potentially excessive impairment to market value, it could attract investors back into the real estate market but on a more sound basis and with a better understanding of underlying risks." (See PIE 156 for full story)

German property funds look to legal reform to combat disarray

The E87bn German open-end property fund community is badly in disarray, highlighted by recent accusations of a spillover re-closure, but sector specialists hope legislative reform to separate private from institutional investors will go a long way toward solving the problems. BVI Director General Stefan Seip told PIE that Berlin has already signalled approval of legislative changes. (See PIE 156 for full story)

Dramatic change in RE private equity in Year of the Golden Tiger

Powerful, volatile and fast, 2010's Year of the Golden Tiger could bring dramatic and rapid change, according to feng shui masters, Eric Rosedale, co-Chairman Global Real Estate at international law firm Salans, spoke to PIE about what the lunar year holds for real estate private equity. (See PIE 156 for full story)

French REITs seen tapping equity markets soon, hope to defuse Solvency II

Three or four larger-cap French REITs are likely to come to market with rights issues in early 2010, says the president of listed property association FSIF. Jean-Paul Dumortier also told PIE he is hopeful Solvency II will not impact insurer investment in member firms. (See PIE 156 for full story)

Enthusiasm for listed real estate to hold stable despite crisis sell-off-EPRA

The massive sell-off in listed European real estate amid the global financial crisis has not dimmed investor enthusiasm for the sector or the willingness of companies to bring property portfolios to the stock market, top officials of EPRA told PIE. (See PIE 156 for full story)

Third German REIT Hamborner aims at active portfolio expansion this year

Duisburg's Hamborner, which late last month became Germany's third Real Estate Investment Trust, aims to expand its E314m portfolio this year. It is already seeking assets to deploy E150m in available funds, board member Rüdiger Mrotzek told PIE. (See PIE 156 for full story)

Munich's Elystan targets E250m at German banks' distressed assets

German banks are likely to start selling non-performing property assets this year that they have not been willing or able to divest earlier in the financial crisis, and new Munich investment firm Elystan Capital Advisers is targeting over E100m of equity at the opportunity, one of the principals Keith Fischer told PIE. (See PIE 156 for full story)

French OPCIs to expand, may cut 65% cap if German problem is avoided - ASPIM

French OPCI open-end property funds should grow soon to E8bn, and may boost attractiveness to private savers by cutting the 65% property cap if authorities are satisfied this will not spark liquidity crises and closures as in Germany, says Arnaud Dewachter, Managing Director of the French property funds association ASPIM, told PIE. (See PIE 156 for full story)

AXA REIM sees fund inflows exceeding 2009; to expand debt fund

The property manager of French insurer AXA is expecting capital inflows this year to exceed 2009, with growth in assets under management of up to E3bn. It has also opened a debt fund to external investors, testing demand for a product that could help fill the post-crisis shortage of bank credit, two top officials of AXA Real Estate Investment Management told PIE. (See PIE 156 for full story)

New Europrogetti & Finanza supports Italy's opening to PPP

Italy is becoming more open to private capital in public projects and the Milan-based QiREF has acquired, alongside Arcotecnica group, part of state-owned Europrogetti & Finanza to advise on this, with stress on social housing. QiREF partner Giacomo Morri, professor of real estate at SDA Bocconi University, told PIE the move combines competence in public sector advisory and in real estate to provide a platform for urban re-development projects. (See PIE 156 for full story)

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