MünchenerHyp sees strong uptick in new CRE business

German mortgage bank Münchener Hypothekenbank wrote €1 billion of new commercial property lending in H1 2017, up by €400 million from the same period last year.

German mortgage bank Münchener Hypothekenbank wrote €1 billion of new commercial property lending in H1 2017, up by €400 million from the same period last year.

The bank said it had written higher levels of new business due to bullish demand for financing and the optimisation of its procedures for new lending requests, which had led to higher volumes of enquiries processed.

“We also benefited from our advantages as a Pfandbrief bank regarding refinancing costs,” a spokesman for MünchenerHyp told Real Estate Capital.

MünchenerHyp said refinancing in H1 2017 took place “at very good conditions”, especially via Pfandbriefe.

For the period, the bank issued €500 million of mortgage Pfandbriefe with a term of 10 years.

“Demand for the issue was very good, and at the time it was placed it had the highest risk discount for covered bonds to this date in 2017,” the bank noted.

Germany accounted for €600 million of the bank’s new CRE lending, although the fastest growing markets were the Netherlands, Spain and the UK, with a growth of between 50 percent and 100 percent across these three markets.

“We want to further increase new business in those countries. During the second half of 2017 we also plan to re-enter the US market to participate in syndication business,” the spokesman said.

MünchenerHyp posted total new business results of almost €2.8 billion, up by 19 percent from H1 2016, on the back of “unbroken high demand” for property financing.

Also in H1 2017, the bank improved its new business for private residential property financing by 4 percent to €1.8 billion, year-on-year. The intensification of the bank’s brokerage business with the co-operative partner banks was the primary driver behind this increase, the bank said.

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