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BF.direkt AG: Lending market for commercial properties under pressure - Seite 2

would also lead to a higher loan-to-value (LTV) on property and corporate
levels.

This assessment was also confirmed by the development of competition in the
following two years prepared as a current topic of the present
Trendbarometer. "The respondents expect higher financing risks to be taken
as a result of declining margins," explains Prof. Dr Steffen Sebastian, who
holds the chair for property loans at the IREBS International Real Estate
Business School of Regensburg University and scientific consultant of
BF.Quartalsbarometer. Competitive, margin and earnings pressure will
ultimately lead to demand for higher volumes. The survey also reveals that
mergers are under consideration by funding organisations in order to remain
competitive. This is being exacerbated by the increasing market presence of
foreign players and the significance of the capital market especially for
larger market participants.

In the case of demand for alternative lenders, the figure in the 3rd
quarter of 2015 declined slightly in the wake of a high reached in the
previous quarter. Nevertheless, 38 per cent of respondents anticipate
stronger demand for additional form of funding. "In our financing practice,
we can confirm a trend in the direction of alternative lenders. Still,
there is some scope for expansion," adds Fedele.

The instrument BF.Quartalsbarometer issued by BF.direkt AG, the independent
specialist for financing strategies, is an analysis tool established in the
finance market since 2012 that analyses the funding propensity for
commercial properties in Germany four times a year. Moreover, the
accompanying analysis provides information on new business, asset classes,
expiry dates for loans, and margins. The BF.Quartalsbarometer panel
comprises over 140 experts on the lender side. In addition to conventional
financing entities like mortgage banks, special banks, public-sector and
co-operative institutions as well as private banks, these also include more
recent funding providers like provident chambers/pension funds, insurers,
real estate private equity and credit funds. The analysis enterprise
bulwiengesa is responsible for the survey and the scientific evaluation.

The current report of BF.Quartalsbarometer is available for download
immediately at www.quartalsbarometer.de as well as www.bf-direkt.de.

About BF.direkt
BF.direkt AG is an independent specialist for financing residential and
commercial property projects. As one of the leading finance consultants, it
develops innovative funding strategies and finds matching financing
partners in the process. In this way, customers of BF.direkt stand to