The Europeans are coming: Continental banks double down on CRE lending

Natixis, Deutsche Bank among active firms

TRD New York /
Mar.March 07, 2018 10:40 AM

Deutsche Bank’s headquarters in Frankfurt and John Cryan

European banks are doubling down on real estate lending, and a growing chunk of the money is flowing into the U.S.

“We have capital and we have appetite,” Deutsche Bank’s head of commercial real estate Roman Kogan told the Wall Street Journal. As of September, German banks held $24 billion in U.S. commercial mortgages on their books, according to Trepp, up from $14 billion a year earlier.

French lender Natixis, meanwhile, has emerged as one of the most active property lenders in the U.S. and recently issued a $480 million construction loan for a development in Boston’s Seaport district.

In The Real Deal’s January 2018 ranking of the top 15 construction lenders in New York City, Deutsche placed first with $2.67 billion in dollar volume across nine deals between October 2016 and September 2017.

Banks are issuing more loans in part because Europe’s economy is booming, and in part because post-crisis regulations are loosening. Spain’s Bankia, for example, saw barred from issuing certain types of mortgages following its government bailout in 2012. But now the prohibition has lapsed, and the lender plans to finance construction projects in Spain again.

“It’s a good time to be in the sector; in terms of growth, the cycle still has upside,” Alberto Manrique, who heads Bankia’s construction financing division, told the Journal.

But the uptick in lending comes amid fears that a bubble is building in Europe’s property market. European Central Bank president Mario Draghi in February voiced concern over the market. “We actually see stretched valuations,” he said. [WSJ] Konrad Putzier 

Related Articles


Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

163 North 6th Street and the Tel Aviv Stock Exchange Bull (Credit: Google Maps, Wikipedia)

Joel Gluck’s Israeli bond issuance falls through as Williamsburg rental project faces financing crunch

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill