Refinancing of Housing Companies

Andreas Segal

The German property finance market experienced a boom between 2005 and September 2008, when the US investment bank Lehman Brothers collapsed – a boom that was mainly driven by the interest of institutional investors from abroad. During the same period, the securitization of real estate loans through CMBS structures reached its zenith. The loans that were securitized back then have started to mature in the meantime; the growing refinancing wave is set to peak in 2013. The challenges facing real estate companies and the financing banks are greater than ever before. This article describes approaches to mastering these challenges and demonstrates with an example from practice what factors are crucial for succeeding.