Comeback of the real estate fund
The credit crisis has hit real estate markets more than many had presumed. But the houses bröckelnden loans will benefit investors who can bring more equity. A large proportion of them based in Germany.
The real estate prices fall, and nobody makes with – it could be the beginning of 2008 describe the buyer and seller in Europe, its activities went back drastically. According to CB Richard Ellis declined the transaction volume on the European property market in the first quarter of 2008 to 37 billion euros. Even in the previous quarter, the volume stood at 58 billion euros. Reason is the different expectations of buyers and sellers: The former is still demand prices as before the credit crunch, the latter waiting for good deals – a vicious circle that really paralyze the markets.
In addition, the new assessment of the so-called execution risk. As from brokerage circles release, set the banks since the beginning of much more importance to an institutional buyer, which they support, have enough equity and financial backing available. The banks are in the current situation, neither willing nor able, 90 percent of the value of real estate collateral. For buyers this means that they provide more equity and pay higher margins, as long as the capital is so restrictive.
However, there are profiteers of this development. These include some of the already totgesagten open-end real estate. In the current situation, they benefit from the restrictive German Investment Act, which they otherwise often einbremste. Accordingly, they may exceed half of their engagement fremdfinanzieren – in times of credit crisis a very helpful regimentation. That should open the German real estate fund further boost. Ever since its crisis in 2005, in which the industry two billion outflows in the field had to cope, she had already until 2007 amazingly recovered. According to estimates by CB Richard Ellis, the German open funds currently have more than 20 billion euro investment capital. In December 2007, SEB Asset Management showed strength, and paid 1.4 billion euros for the Daimler-portfolio at Potsdamer Platz in Berlin.