FAP Barometer for Property Financing at Highest Level for the Past Two Years

BERLIN, January 26, 2015 /PRNewswire/ --

In the first quarter of 2015, the FAP Barometer returned a record score of +2.87 points (previous quarter: +2.33 points). For lenders on Germany's commercial real estate financing markets, the new year seems to have been off to a very good start.

Well over 53 percent of the respondents deem the terms of financing more progressive since the previous quarter, while another group representing nearly 47 percent rate the terms as unchanged. None of the polled lenders believes that the terms of financing have become more restrictive.

Curth-C. Flatow, Managing Partner of FAP, commented: "The high spirits among lenders is inspired by new lending business. Almost 60 percent of them stated that new business in commercial real estate financing has increased lately. It is the highest level since the end of 2012. We might actually be looking at yet another bumper year for Germany's real estate market."

The LTV bracket in inventory financing ranges from 30 to 100 percent in Q1 2015, while the benchmark ratio across all financing types and property types is 71 percent. The spreads extend from 65 to more than 525 basis points, while the current median of 158 bp undercuts that of the previous quarter (176 bp). In project development financing, the LTC bracket extends from 45 to 90 percent, with the benchmark at 72 percent. Spreads go as high as 300 basis points, the median being 201 basis points (previous quarter: 224). Over the past 12 months, spreads for inventory financings have dropped by more than 22 percent, those for property development financings by more than 10 percent.

Download FAP Barometer Q1/2015 quarterly report: http://www.fap-finance.com/en/barometer.aspx

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