FINANCING RETAIL REAL ESTATE
SUCCESSFUL IN CHALLENGING TIMES
ECE also takes a smart and forward-looking approach to our business activities when it comes to financing needs and measures in the shopping center sector. Despite rapidly rising interest rates, for example, we acted in good time and succeeded in extending expiring financing deals in the medium or long term. In times of growing regulatory pressure on banks and considerable uncertainty due to a lack of transactions, ECE can rely on a stable and trustworthy banking network for its investors. We have been able to secure new financing partners primarily from the savings banks and cooperative banks sector.
The consideration of ESG criteria also plays a key role in financing. Together with the banks, ECE defines measurable ESG key figures that are meaningful for the specific properties or financing models. Moreover, early on in each loan’s term we draft a renewal strategy that is individually tailored to the respective investor’s needs, while also factoring in potential lenders’ ESG standards.
As a global company, ECE has extensive international experience and expertise when it comes to short-term project financing for developing and restructuring existing properties, long-term portfolio financing, and refinancing. In the ECE Marketplaces division, we currently manage 6.7 billion euros of loans provided by around 50 institutional lenders. With a weighted average remaining term of 4.4 years and an average loan of 80 million euros per property, on average 750 million euros’ worth of loans come due for renewal each year. On top of that, there is financing for new projects.
“We are benefiting from our trusting partnership with financing partners and longterm funding strategies, especially in the current phase.”
CLAUDIA PLATH, CFO OF THE ECE GROUP
On the equity side, we take advantage of our group’s strong financial position, with over 1.1 billion euros in equity. In addition, our fund management division ECE Real Estate Partners works with large institutional investors – including major insurers, real estate companies, pension providers, sovereign wealth funds, and pension and real estate funds – as do some of our other divisions.
That strategy has allowed us both to make necessary investments in our existing properties – for example, to meet the requirements of CRREM pathways or adapt to developments in the retail sector – and to finance new or acquired development projects. //
€ 6.7 billion
CURRENT LOAN VOLUME
€ 750 million
ANNUAL CLOSING VOLUME
Approx. 4.4 years
WEIGHTED AVERAGE REMAINING TERM
Around 50 lenders*
BANKS, INSURERS, REGIONAL SAVINGS BANKS, AND COOPERATIVE BANKS
2.4%
AVERAGE INTEREST RATE
TOP-5-BANKS:
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DZ HYP
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LBBW/BERLINHYP
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HELABA
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MÜNCHNER HYP
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NORD LB/DEUTSCHE HYPO
*estimated number