Club MeetingLondon, December 7th

State of the Europe Debt Finance Market

Cautious optimism for 2018 but are returns becoming too high to target?

Brexit, ultra low interest rates, financial regulation and a genuine concern about the availability of debt finance at competitive levels are causing headaches for most lenders, investors and developers. Which is why on the 7th December, GRI Europe club members gathered to make sense of the state of the European debt finance market. 

Graciously hosted by GRI UK Club Partner Evercore, the discussion views varied , for the better if you are leveraging mezz and for worse if you are financing development.

Warming up the discussion, Swagata Ganguly ,Senior MD, Head, European Debt Advisory, Evercore gave a market overview of the state of the European debt market. Overall, the volume of investment is up around 13% compared to last year, UK & Germany playing a significant part in this growth. Sectorally, offices remain the largest benefactor of debt but everyone was excited about the unprecedented rise of industrials, investments up almost 300% from 2017. The presentation was rounded off by some crystal ball gazing into the short term, as most members were worried about pricing and interest rates. Whilst it feels like some lenders are pushing back, actually, average margins have gone up in the past 6 months indicating the lending appetite is somewhat positive. Of course, Brexit could derail everything, we have seen a huge decline post -Brexit of EU lenders entering the UK.

Members then engaged in animated discussions weighing up the pros and cons of the ultra low interest rate environment, the state of play for development finance and swapped anecdotes on encouraging new asset classes, fund structuring and finding decent yields and was moderated by Federico Montero, Managing Director, Head of RE Portfolio, Evercore. It was a perfect opportunity to understand on a peer level, what threats and opportunities were around the corner.

The general sentiment during the discussion was cautiously optimistic; we have seen growth in the debt fund market in the last 12 months, albeit the target IRR’s are still relatively high. The low Interest rate environment was a recurring theme during the meeting as most members are worried about where they will go and the damage this would do to the yield curve, affecting risk appetite. In the UK we are seeing a complete flattening of the curve, and the worry is how this will affect the Europe curve in general - for better or worse?

In such a climate, member’s naturally asked one another how they were trying to squeeze yields to get higher returns and what LTV’s they were currently lending at. Most were increasingly using Mezz to help structure deals which begs the questions, where was the senior debt and are banks now being priced out of the playground?

Whilst there were dangerous threats, it was felt that good structures leveraging mezz and senior debt, a watchful eye on rates and investment in strong assets would see us avoid any major upsets in 2018.

Pan-European Advisory Members
Dmitry MintsDmitry MintsChairman of the BoardO1 Properties
Vadim KorsakovVadim KorsakovCIONPF Blagosostoyanie
Gordon BlackGordon BlackSenior Managing DirectorHeitman
Patrick AlbrandPatrick AlbrandPresidentHines France
Richard CroftRichard CroftCEOM7 Real Estate
Trish BarriganTrish BarriganManaging PartnerBenson Elliot Capital Management
Ronald A. RawaldRonald A. RawaldHead of International Real EstateCerberus European Capital Advisors
Aref LahhamAref LahhamFounding Partner & Managing DirectorOrion Capital Managers
Robert MartinRobert MartinFounding Partner, Head of Central EuropeEuropa Capital
Pavel TrenkaPavel TrenkaGroup CEOHB Reavis Group
Michael AbelMichael AbelManaging DirectorTPG
Gábor FutóGábor FutóFounder & OwnerFutureal
Nebil SenmanNebil SenmanManaging PartnerGriffin Real Estate
Árpád TorokÁrpád TorokCEOTriGranit Development Corporation
Alban LissAlban LissPresidentDTZ Investors
Tania Concejo-BontempsTania Concejo-BontempsPrésidenteUnion Investment France
Jean-Philippe OlgiatiJean-Philippe OlgiatiManaging DirectorBlackRock
Frédéric BôlFrédéric BôlHead of Real Estate FranceSwiss Life Group
Inès Reinmann ToperInès Reinmann ToperAssociate Director, Real EstateEdmond de Rotschild Corporate Finance
François GrandvoinnetFrançois GrandvoinnetPrésidentAviva Investors Real Estate France
Sascha WilhelmSascha WilhelmCEOCORESTATE Capital Holding S.A.
Daniel BuaronDaniel BuaronChairmanFirst Atlantic Real Estate
Silvia RovereSilvia RovereCEOMorgan Stanley SGR
Mauro MontagnerMauro MontagnerCEO Southern EuropeAllianz Real Estate
Miguel PeredaMiguel PeredaCEOGrupo Lar
Daniel Losantos EgeaDaniel Losantos EgeaChief Executive OfficerNeinver
Jared HartJared HartManaging DirectorThor Equities
Priya Hiranandani-VandrevalaPriya Hiranandani-VandrevalaFounderHiranandani Living
Dmitry Mints
Chairman of the Board
O1 Properties
Russia
Segment: Investor Owner
Biography:
Dmitry Mints has been Chairman of the Management Board of O1 Properties since the company foundation in 2010. From 2011 to 2012 he was member of Boards of Directors of Otkritie Bank and Otkritie Financial Corporation. From 2006 to 2011 he was Management Director of Otkritie Financial Corporation. From 2003 to 2006 worked with SDM-Bank, where he contributed to direct investment projects of the bank in the field of construction and industrial production as a Head of the international business department. Mr. Mints graduated from Moscow State Institute of International Relations and holds a degree in international commerce.
Vadim Korsakov
CIO
Russia
Segment: Investor
Biography:
As Chief Investment Officer Vadim Korsakov responsible for investment portfolio and asset allocation of Top 2 pension fund in Russia, which name translates as “Prosperity”. Vadim Korsakov has a strong background in investments, asset management, project financing and real estate investments. He has been managing stocks and bonds portfolios as well as real estate investment trusts for over 15 years. Mr. Korsakov holds a degree from Marine Technology University of St. Petersburg. He pursued his post-graduate education at the St. Petersburg State University of Economics and Finance. He is married, has two children and resided in Moscow, Russia.
Gordon Black
Senior Managing Director
Heitman
United Kingdom
Segment: Investor, Real Estate
Biography:
Gordon ir the senior Managing Director of Heitman's European Private Real Estate Equity group and an equity owner of the firm. He is a member of Heitman's Executive Committee, Board of Managers, Global Management Committee, and European Investment Committee. Since 1995, Gordon has had primary responsability for Heitman's investment activities real estate transactions totaling over €6 billion to date and Gordon has been involved in global acquisition and disposition activity totaling just under €8 billion. Gordon received a BA in Finance from Michigan State University. He is member of the Urban Land Institute and the Commercial Real Estate Institute.
Patrick Albrand
President
Hines France
France
Segment: Developer / Investor
Biography:
Mr. Albrand joined Hines in 1995 and has been instrumental in the establishment and supervision of its French subsidiary. He has been active in the overall development of Hines France’s both on the development and the Investment Management activities. Prior to working at Hines, Mr. Albrand was the Director in charge of Development at Bouygues Real Estate in Paris (1989-1995). He was a Senior Research Associate at Lawrence Berkeley Laboratory in Berkeley, California (1983-1987), and prior to that, he was with the Ministry of Interior of Morocco (1980-1982). Mr. Albrand received a Master in Architecture at Ecole des Beaux-Arts in 1980 and a Master in Real Estate Development from Columbia University in 1988.
Richard Croft
CEO
M7 Real Estate
United Kingdom
Segment: Asset Manager
Biography:
Richard Croft is co-founder and CEO of M7 Real Estate Limited, one of the leading specialists in the pan-European, regional, multi-let real estate market. Following the acquisition of Hansteen’s European operations earlier in the year. M7 has over 180 employees in 13 countries across Europe and manages over 800 retail, office and industrial properties with a value of circa €4.1 billion. Richard is responsible for the strategic direction of the company, capital raising and leads the real estate fund management function. He has been involved in over 7bn euros of transactions during his 25 years of real estate experience.
Trish Barrigan
Managing Partner
Benson Elliot Capital Management
United Kingdom
Segment: Fund Manager
Biography:
Trish has over 20 years industry experience. Co-founded Benson Elliot with Marc Mogull in 2006. Prior to Benson Elliot, Trish spent two years within the Dubai Holding Group as Chief Strategy Officer and Head of Global Real Estate Investments for Dubai Investment Group. Ten years at Goldman Sachs, primarily in real estate principal investing and portfolio management for the Whitehall Funds in New York, Paris and London. Trish earned a BA degree, summa cum laude, from Boston College. Benson Elliot is a specialist European real estate private equity firm applying decades of investment experience, deep market knowledge and in-house operational expertise to generate sustained investment outperformance.
Ronald A. Rawald
Head of International Real Estate
Cerberus European Capital Advisors
Aref Lahham
Founding Partner & Managing Director
Orion Capital Managers
United Kingdom
Biography:
Aref Lahham is Founder and Managing Director of Orion. He is located primarily in Orion’s London office and acts as Orion’s Chief Executive Officer, setting the strategy and leading the Orion Fund’s acquisition team. He has been responsible for over €5.0 billion of property acquisitions throughout Europe. Aref has 30 years of real estate investment and development experience in the US and Europe. He has served on the board of French public quoted company Société Foncière Lyonnaise as well as on the investment committee of a Bulgari sponsored private equity fund called Opera. Mr. Lahham has a BSc in Civil Engineering from Purdue University, a Masters of Engineering in Civil Engineering from Cornell University and an MBA from INSEAD.
Robert Martin
Founding Partner, Head of Central Europe
Europa Capital
United Kingdom
Biography:
Robert is a Founding Partner of Europa Capital and is Head of Central Europe. He is responsible for investment origination, acquisition, and asset management across the Region and is a member of the Investment Committee for all Europa’s funds. Before starting Europa in 1998, Robert worked at St Quintin and Herring Baker Harris in London. He is a Member of the Royal Institution of Chartered Surveyors and has a BSc in Land Management from Reading University and a Masters of Business Administration (MBA).
Pavel Trenka
Group CEO
HB Reavis Group
Slovakia
Segment: Developer
Biography:
Pavel Trenka is the CEO of HB Reavis Group, currently the 3rd largest office developer in Europe, according to PropertyEU’s annual ‘Top Developers Survey’. HB Reavis was founded in 1993 in Bratislava, Slovakia and at present operates in the United Kingdom, Poland, the Czech Republic, Slovakia, Hungary, Turkey, now also expanded into the German market. Pavel joined HB Reavis in 2007, and leads the Group’s overall strategy and international expansion. Prior to joining HB Reavis, Pavel spent seven years as a Consultant at McKinsey & Company and was previously an investment banker at Bank Austria Investment Bank. Pavel is a graduate of The University of Rochester’s Simon Business School in New York, USA.
Michael Abel
Managing Director
TPG
United Kingdom
Segment: Private Equity
Biography:

Michael is a Managing Director and a member of TPG Real Estate’s Investment Committee and is based in London. He joined TPG from Europa Capital and started his career in the Private Equity Real Estate divisions of J.P.Morgan and Lehman Brothers. He holds a Diplome de Grande Ecole and MSc in Management from ESCP Europe, and speaks German, Spanish, English, Portuguese and French. He currently serves on the Board of Directors of TriGranit and A&O Hotels and Hostels.

Gábor Futó
Founder & Owner
Futureal
Hungary
Segment: Development Partner
Biography:
Gabor Futo is founder of Futureal Group. Under his leadership Futureal has become one of the leading real estate developer and investor in the CEE region with a team of over 300 top professionals and with project pipeline of over 1.6 billion Euro, including more than 6,000 residential units and over 500,000 sqm of commercial space. Cordia, its residential arm, is the number one residential developer in Hungary and is also active in Poland, Romania, Germany and the USA.
Nebil Senman
Managing Partner
Griffin Real Estate
Poland
Segment: Investor
Biography:
Nebil Senman is a Managing Partner of Griffin Real Estate, a leading and dynamically-growing investment group operating in CEE's commercial real estate market. Previously, Nebil held positions for nine years as Senior Vice President and Supervisory Board Member of Oaktree’s German and Polish real estate funds and operations worth several billion Euro. Before joining Oaktree, Nebil spent eight years within the real estate advisory and corporate finance division at Ernst & Young Real Estate (previously Arthur Andersen) where he held different managerial positions. Nebil is a graduate of universities in Berlin, Paris (ESCP-EAP) and London. He holds an MBA and a degree in civil engineering, and a post-graduate diploma in real estate management.
Árpád Torok
CEO
TriGranit Development Corporation
Hungary
Segment: Real Estate Platform
Biography:
Árpád has been in the international real-estate business for more than 2 decades, more than 15 years with TriGranit. Previously held senior management positions at Cushman & Wakefield in Europe. Was appointed to CEO of TriGranit in 2009, the company has since succeeded to obtain over 1 billion Euros in financing and refinancing to develop around 950,000 m² of projects completed or currently under construction. TriGranit - one of the largest fully integrated real estate investment, development and management platforms in CE.
Alban Liss
President
DTZ Investors
France
Segment: Investment Management
Biography:
Alban joined DTZ Asset Management in November 2013. Alban began his career in 1990 at AWON Asset Management In 2003 he joined Generali Real Estate, as director of asset management and investment then of international investments. Alban then joined Area Property Partners France. Alban was awarded a “Pierre d’or” in 2008. Alban is a graduate of Sciences Po Paris, and holds a master in Business Law. He is a member of the Real Estate Club of the Ile-de-France.
Tania Concejo-Bontemps
Présidente
Union Investment France
France
Segment: Asset Manager
Biography:
Tania Concejo-Bontemps is President of Union Investment Real Estate France leading the Paris subsidiary since 2011. She has over 15 years of experience in general management investment and asset management leading multi-disciplinary projects and teams
Jean-Philippe Olgiati
Managing Director
BlackRock
France
Segment: Fund Manager
Biography:
MD, is a member of the RE team at BlackRock. He is responsible for acquisitions, financing and asset and development management for the different real estate opportunities sourced in France and Italy as well as assets already under management for BlackRock. Prior to joining MGPA, Mr. Olgiati worked for Bouygues Construction, a leading construction company in France, where he led a development team focusing on refurbishment of the Greater Paris region. He managed feasibility studies worth more than €1 billion on behalf of opportunistic funds for acquisition with potential redevelopment.During his tenure at Bouygues Construction,he was previously Head of Purchasing,managing a team of 50 people being in charge of a 285 million annual budgets.
Frédéric Bôl
Head of Real Estate France
Swiss Life Group
FRANCE
Biography:

Frédéric Bôl is the founder of Swiss Life REIM (France) and Head of RE France - Swiss Life Group. He has 30 years of experience in asset management, banks and insurance companies. He created AF2i (French Association for Institutional investors) in 2004 and participated to the creation of OPCI (French non-listed REIT). Since its creation, Swiss Life REIM (France) is leader on the OPCI market and AIFM approved, offering real estate tailor-made solutions for institutional investors with 3 missions: investment funds, portfolio management & asset management. The Real Estate in France represents more than €7,3 bn as of end of December 2015 through 38 real estate vehicles with multi-sector competences and employs 90 people.

Inès Reinmann Toper
Associate Director, Real Estate
Edmond de Rotschild Corporate Finance
FRANCE
Biography:
Inès began her career in 1980 with the Dumez group. In 1988, she joined Bouygues as Development Manager. Then she joined Coprim, where she held various management positions. In 2000, she became MD of Icade Tertial, where she introduced and developed workstation expertise, structured turnkey transactions and developed the shopping center business. In 2004, she became the Business Property Market Director at Icade. She is also the President of Icade EMGP, Icade Tertial, Icade Eurogem & Icade Gestion Tertiaire. In 2007 she was MD for Continental Europe at Segro PLC. In 2010 she was appointed partner at Acxior & CEO of Acxior Immo in 2012. In 2014, she becomes MD in charge of RE and Member of the Board at Edmond de Rothschild Corporate Finance.
François Grandvoinnet
Président
Aviva Investors Real Estate France
FRANCE
Sascha Wilhelm
CEO
CORESTATE Capital Holding S.A.
LUXEMBOURG
Biography:

Sascha Wilhelm is CEO of CORESTATE Capital Group and chairman of the Investment Committee. Sascha is responsible for the overall strategy as well as equity raising and client relations. He also focuses on corporate functions such as HR and corporate legal. He has more than 12 years RE investment experience. CORESTATE, listed on the Frankfurt Stock Exchange, is a fully integrated RE investment manager and co-investor seated in Luxembourg. Since foundation in 2006 the transaction volume amounts to EUR 5.7bn.

Daniel Buaron
Chairman
First Atlantic Real Estate
Milan | Italy
Segment: Investment Manager
Biography:
Daniel Buaron is Chairman of First Atlantic Real Estate (FARE), re-founded by him in 2014, two years after the sale of FARE Group to the DeAgostini Group. In fact FARE Group was founded by Daniel in 1998 and was the Italian operating partner of Goldman Sachs’ Whitehall Funds until 2007. In 2005, he founded FARE SGR which became the leading Italian RE fund management firm after the merger with FIMIT SGR (2011) with over 10 billion of AuM. Prior experiences include being Founder, CEO and Vice Chairman of Tradital S.p.A. and CEO of Metropolis S.p.A.. Mr. Buaron began his career with JP Morgan. He graduated with a business degree from Università Bocconi and received his MBA from Harvard Business School in 1976.
Silvia Rovere
CEO
Morgan Stanley SGR
Italy
Segment: Fund management company
Biography:
Silvia has 23 years experience in PE and RE finance,12 of which were spent structuring and managing RE funds in excess of 7 bn of assets.She has been CEO of Morgan Stanley SGR S.p.A. since joining in 2014.Prior to that she was the CFO of Patrimonio dello Stato Spa (MEF),Head of Business Development at Aedes Group,DG at REAM SGR and board member of Villa d’Este Spa,Euromilano Spa,Genova High Tech Spa & Pirelli RE Integrated Facility Management Spa.She has carried out academic activities and research for the University of Economics in Turin,the Centro Einaudi of Turin and the Master in Real Estate Finance at SDA Bocconi.She is a member at RICS,ULI Italia and Fondazione Res Publica.She is now FRICS and Chairman at Assoimmobiliare.
Mauro Montagner
CEO Southern Europe
Allianz Real Estate
Italy
Segment: Investor
Biography:
Mauro Montagner is CEO Allianz RE Southern Europe, and is member of the Allianz RE Executive Committee & Investment Committee. In his role, Mauro is responsible for the management of a €2.5 bil portfolio, as well as for the investment program of Allianz in the region. Before joining Allianz, Mauro was MD at Morgan Stanley, where he served as portfolio manager for a large pan-european RE fund and also as Country Head for the RE investment activity in Italy. Prior to that, Mauro was Director at London-based Curzon Global Partners, where he was responsible for the acquisition and asset management operations in Italy.
Miguel Pereda
CEO
Grupo Lar
Spain
Segment: Investor/Developer
Biography:
Miguel Pereda has over 25 years experience in the real estate sector. Currently he is CEO and member of the executive board of Grupo Lar, a RE company with vast experience in the sector that operates in Europe and Latam. He also is Director of Lar España Real Estate which in March'14 was the 1st REIT to be floated in Spain. Earlier in his career in RE, Miguel Pereda held for 6 years the position of CEO of Grupo Lar Grosvenor. He holds a degree in Economics and Business Studies from the UCM, a Master’s Degree in Tax Consultancy from ICADE and an MBA from the IE, the Breakthrough Program for Senior Executives taught by the IMD and a RE program at HBS. He received in 2015 the Fellow designation, as an Eminent Member by RICS.
Daniel Losantos Egea
Chief Executive Officer
Neinver
Biography:
Daniel Losantos is CEO at NEINVER since October 2015; a leading property development, investment and asset management company with operations in the Czech Republic, France, Germany, Italy, the Netherlands, Poland and Spain. Daniel joined the company in 2011 and became Managing Director in 2012. He previously worked at the finance boutique A&G for several years. He is an Industrial Engineer by the “Universidad Pontificia de Comillas ICAI” and holds an MBA from Columbia.
Jared Hart
Managing Director
Thor Equities
United Kingdom
Biography:
Jared Hart joined Thor Equities to lead the company’s European expansion with an investment strategy aimed to focus on well-located properties where there is an ability to enhance value by way of rental uplift or redevelopment. Since starting at Thor he has acquired approximately 2 billion euros of assets in Europe. Thor Equities was founded in 1986 by President & CEO Joseph Sitt. The company owns prime properties in the US, Europe, Canada and Latin America, with portfolio transactions and a development pipeline in excess of $10 billion
Priya Hiranandani-Vandrevala
Founder
Hiranandani Living
India
Segment: Mixed use developments, apartment buildings, offices and retail
Biography:
Postgraduate degree, Mumbai Univ. Chartered Accountant. Entrepreneur, investor and philanthropist with interests in real estate and technology. Formerly with: Arthur Andersen; Hiranandani Group. 2002, Founder, Zenta, a BPO firm serving financial institutions. 2006, Co-Founder, Hirco. 2012, Co-founder Veldos, owner of global BPO business. Head, Vandrevala Foundation, a social enterprise active especially in support of mental health. Former Chairman, Steering Board, Real Estate Community, World Economic Forum. Young Global Leader, World Economic Forum. Patron, Elephant Family. Member of the Board, American School in London. Indian developer of luxury residential real estate and mixed use townships.
Timetable

Thursday, December 07th

16:00 - 17:00 - Welcome Refreshments


17:00 - 17:20 - 2017 Recap & Debt Market Outlook 2018 Presented by Evercore


17:20-18:30 - GRI Style Discussion


18:30 - 19:30 - Christmas Drinks Reception

Registration

Attendance is reserved exclusively for GRI Club Members.

Membership is available to senior investors, lenders and developers in real estate.

Non-members can enquire here to become a member and join the club meeting.

Kirsty Stevens

Kirsty Stevens

Head of Projects - UK & Ireland

+44 (0)20 7121 5095

[email protected]
Kirsty Stevens
+44 (0)20 7121 5095
Head of Projects - UK & Ireland
GRI Club
Biography:

Kirsty has seven year’s experience in conference production globally. Her previous role included Conference Producer for RICS, fostering events in Corporate Real Estate, Residential, Industrial and Regional Investments across UK, Middle East and Europe. Kirsty is passionate about industrial and logistics, residential alternatives, distressed Investing, as well as connecting investors and developers with focused discussions in her core markets of the UK and Europe.

Club Partner UK

Evercore
Evercore

Evercore is a premier independent investment banking advisory firm. Evercore was founded in 1995, on the premise that clients would be best served by an investment banking firm free of the conflicts of interest inherent to large, multi-product financial institutions. We believed our model would attract the most talented senior finance professionals to our firm. We believed that by maintaining the highest standards of excellence we could create a firm unlike any other in terms of capabilities to advise on highly complex strategic transactions, dedication to our client and our experience and professionalism. Today, we serve a prominent and diverse set of clients and investors, including leading multinational corporations, large institutional investors and financial sponsors, and high net worth individuals.

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