Aareal’s new lending volumes up as it keeps US drive

The German bank generated €6.1bn of new real estate loans in the first nine months of 2018, up 7% year-on-year despite lower activity in Europe.

Aareal has increased new loan originations while it keeps growing US market share, amid a backdrop of decreasing lending volumes for some peers.

The German bank saw its new lending volume grow to €6.1 billion in the first three quarters of 2018, compared with €5.7 billion in the same period a year ago. While fresh business increased in North America and the Asia-Pacific region, it was “noticeably” lower in Europe, the bank said. Although new loan originations accelerated in Belgium and Poland, declines were seen in Germany, Italy, Spain and the UK. Fresh business remained stable in France.

“We still continue to focus on North America,” a spokeswoman told Real Estate Capital, adding that the bank is willing to finance in many European markets, which represents an important basis for Aareal’s business.

Aareal said in its latest quarterly report that “fierce competition” for the financing of commercial properties persisted in many markets.

“Margins in the European and US markets were under pressure this year so far, although they remained higher in the US than in Europe,” it said.