Spain

Financing in a challenging market

Financing in a challenging market
Financing in a challenging market: Spain Real Estate Summit 2024

On the 25th and 26th of June, the Spain Real Estate Summit comes to Madrid, taking place at La Finca the UZalacaín space, to debate the attractiveness of Spain as an investment destination, and where the main opportunities may be for the future.

From traditional banking industry to new alternative funding vehicles…is the bond market one of the rising financing sources in Spain?

Everyone expects to see a reduction of interest rates, but the big question for investors now is who are going to be the active lenders. By mid-2022, both the Euribor and European central bank interest rates entered an upward rally not seen since the inception of the Euro, leading to a steep reduction of investment volume linked to the now more expensive financing.

EU banks hold almost €1.4 trillion in Commercial Real Estate loans, raising concerns about their vulnerability to rising interest rates, inflation, and a weakening economic outlook. Bank’s loan books exposure to real estate and construction has been considerably reduced since 2008, and somebody needs to fill in the gap.

To debate where we are in the financing cycle, the attitude of lenders, and how equity is being affected in the current environment, George Molesworth, Managing Director, Credit at Apollo, Domingo Etcheverría, Principal RE Investment EMEA, Carlyle, and Guillaume Baron, Head of Commercial Real Estate Finance EMEA, Santander, will share the stage on the first day of the Spain Real Estate Summit. This roundtable discussion will be moderated by Courtney Fingar, Contributing Editor, Real Asset Media.

The Speakers expertise: leading investment firms

Apollo is a high-growth, global alternative asset manager. Among its strategies, credit places a key role and as of 31st of March of 2024 the firm had $476 billion of assets under management. Apollo offers solutions for multi-asset credit, direct lending, asset-backed and opportunistic credit cycles.

Carlyle manages $425 billion in assets, spanning 3 business segments and 595 investment vehicles, investing over the long-term. Carlyle’s Global Private Equity business is one of the world’s largest and most diversified private equity platforms, having $159Bn of assets under management, linked to almost 300 active portfolio companies and managed through over 20 global private equity offices.

Finally, Santander is a Spanish bank which is available to developers, investors, or owners, offering reliable financing solutions for every phase of development – from construction or project finance to permanent lending. Santander offers a wide range of commercial mortgage products and commercial real estate services.

A 2-day intense conference

The SPAIN REAL ESTATE SUMMIT, which is organised in collaboration with CBRE and JLL, comes at a crucial time and in a challenging environment, influenced by the geopolitical situation, and will be a unique initiative for a deep collective reflection by leaders in analysis and opinion and references in the world of economics and investment in the real estate sector.

The macroeconomic situation, the reconversion of assets, new financing models, the production of a greater volume of affordable housing or the effect that new technologies and the deployment of AI have on the real estate sector will be some of the issues to be debated.

The SPAIN REAL ESTATE SUMMIT will also feature parallel sessions to generate maximum interaction between participants, which will cover complementary topics such as investment in retail, hotels, logistics and data centres, allowing investors to take an active part in the debate by expressing their concerns and expectations.

This Iberian Property event is set to be an essential platform for the discussion of the current and future dynamics of the real estate market in Spain. By bringing together opinion leaders, economic experts and investors, the event aims to foster collective reflection and the identification of innovative solutions to market challenges. A true catalyst for growth and adaptation of the sector in a constantly changing economic and technological environment.

The SPAIN REAL ESTATE SUMMIT will not only be a reflection of the dynamism of the Spanish real estate market, but also an opportunity to influence and form part of its future. A vital meeting point for sharing knowledge, driving innovation and forging new alliances in the sector.

For more details about the SPAIN REAL ESTATE SUMMIT and how to participate, please click HERE.

IBERIAN PROPERTY INVESTMENT AWARDS 

At the SPAIN REAL ESTATE SUMMIT, on 25 June, the winners of the IBERIAN PROPERTY INVESTMENT AWARDS 2024 will be announced, a high point for the Iberian investment sector in which, after the analysis of a large jury of more than 40 prestigious professionals, the main transactions will be awarded and the best practices of the sector in Spain and Portugal during 2023 will be recognised.

For more details about the IBERIAN PROPERTY INVESTMENT AWARDS, please click HERE.

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