Bankinter and German Düsseldorfer Hypothekenbank AG (DHB) form alliance to finance commercial real estate in Spain
Bankinter is looking to channel foreign investors' growing interest in directly financing Spanish companies and commercial real estate transactions in Spain. This is the third such agreement the Bank has signed in the past few months, following those entered into with Magnetar and Mutua Madrileña.
Düsseldorfer Hypothekenbank is expanding its business to the Spanish commercial real estate market.
Bankinter, through its Investment Banking division, and German mortgage bank DHB have signed a strategic alliance to finance commercial real estate transactions in Spain in the coming years. This agreement leverages one of Bankinter's greatest strengths, namely its proven capabilities in analysing and managing credit risk, as well as DHB's expertise in cross-border real estate financing. It comes at a time when the number of real estate transactions in Spain and the demand for respective funding solutions is increasing again.
Given both parties' substantial financing capacity, the banks are looking for large-volume loan tranches to finance. No maximum limit has been set to the total amount that could be financed under this agreement. The intention is to cover as far as possible the financing needs of the various players in real estate transactions.
The agreement between Bankinter and DHB comes at a time of renewed interest by international investors in investing and acquiring assets in Spain. Dr. Christian von Villiez, CEO of Düsseldorfer Hypothekenbank, acknowledges: "We are convinced that the commercial real estate core markets in Spain are advancing into a growth phase. Now is the right time to enter the market. The strategic partnership with Bankinter, as a trusted local player, is an important step in launching our services to professional investors of Spanish commercial real estate. Such models have proven to be very successful in our European operations so that we look forward to building the Spanish business with Bankinter".
Iñigo Guerra, General Manager of Bankinter and head of the Investment Banking division, pointed out: ''The alliance with an international partner of DHB's standing constitutes confirmation of our commitment to making the future financing of businesses and projects in Spain much more diversified and not solely dependent on the banking system. "This agreement, complementing those already signed with Magnetar and Mutua, expands our ability to continue supporting the recovery of Spain's real economy by increasing available credit and becoming major players in intermediation between foreign investors and the obvious opportunities that currently exist in our country".
Betting on disintermediation
Bankinter Investment Banking is playing a pioneering role in the finance sector in terms of promoting business financing through channels other than traditional bank credit.
The deal signed with DHB is Bankinter's third such agreement in the past few months. In October 2013 Bankinter entered an alliance with US company Magnetar to provide financing for Spanish projects and businesses. This agreement aims to finance all kinds of initiatives: corporate growth projects, concession projects, infrastructure, acquisitions, venture capital, etc.
In April of this year, Bankinter and insurer Mutua Madrileña announced a similar agreement aimed at financing Spanish companies.
With all these initiatives, Bankinter is once again ahead of the Spanish market in spotting a trend that is becoming increasingly established in other countries, especially the US, where non-bank financing of companies reaches as much as 80% of their financing needs.
About Bankinter Investment Banking
The Investment Banking division reinforces Bankinter's profile as a comprehensive provider of financial services. Bankinter Investment Banking advises investors, businesses and entrepreneurs on mergers and acquisitions, capital markets and financing, covering the full range of activities relating to these areas.
About Düsseldorfer Hypothekenbank
Düsseldorfer Hypothekenbank is a reliable and flexible partner for financing commercial real estate in Germany and selected European core markets. Lean decision-making processes and experience in catering to professional international real estate investors make Düsseldorfer Hypothekenbank a valuable partner for acquisition financing, predominantly of offices, residential, retail and logistic real estate.