gif symposium on how the fund industry is dealing with the recession
The Society of Property Researchers, Germany (gif) hosted the 20th symposium of the gif Indirect Investment Competence Group yesterday. The topic was how the fund industry is dealing with the recession.
The event took place at the Design Offices offices in Wiesenhüttenplatz in Frankfurt. The W25 property is part of MEAG's portfolio.
This was an exciting event given the current challenges facing real estate funds.
Prof. Dr. Steffen Sebastian from IREBS International Real Estate Business School at the University of Regensburg hosted the program.
Here are a few interesting statements from the speakers:
Dr. Reiner Braun (empirica AG): Prices for residential real estate will remain broadly stable in nominal terms in waves in the future.
Jens Nietner (HIH Real Estate): The uncertain market environment is putting pressure on yields from various directions, including liquidity, ESG, tenant creditworthiness, and financing. Given the current challenges, fund and real estate management is intensive.
Francesco Fedele (BF. direkt AG): There will be few interest rate cuts in 2024, rather later in the year than earlier. There will be no return to the world of zero interest rates. Market participants should bury this hope.
Matthias Huesmann (Ärzteversorgung Westfalen-Lippe): Domino effects are already recognizable on the market. Sharp changes in value increase the LTV and require additional repayments for the first loan extensions. Incentives are necessary in a tenant market, which burdens liquidity more. Income is held back as a result.
Frank Müller (McDermott Will & Emery): No fire sales for mutual funds because of regulation. Without special situations such as suspension of redemption or liquidation, a sale is only possible if the market value is not or not significantly (3-5%) lower.
Many thanks to gif for an informative event and the pleasant exchange among the participants.
