"There are many cases in which a developer wants to build a residential building, but his 'usual' financial institution requires him to have sold more than 50%".
It is a market maxim: in every crisis, opportunities arise. And on the current horizon of rising interest rates and tightening of traditional financing, the window is opening for alternative financing firms, which are destined to occupy a large part of the space left by the banks.
It is not only due to the shortcomings of this sector, the change in priority and in the interests of its business; private equity itself, in terms of alternative financing, has been 'doing its homework': transparency, flexibility, proximity... and above all enormous efficiency and speed in the processing of operations.
There are many cases in which a developer wants to build a residential building, but his 'usual' financial institution requires him to have sold more than 50%. "In the case of DEXTER, if in fact as a result of our feasibility study we determine the commercial strength of the development, we go in with pre-sales, without reservations. We make a first strong injection to start building and those sales usually progress and advance in a few months. It's a win-win situation for all parties involved".concludes Guillermo Díaz, Commercial Director of the company.
The latest reports on debt financing in Europe show that the market remains active, but that the cost of borrowing has generally risen by 100-150 basis points from the previous period, although in the UK, for example, it has soared to 250 basis points.
This context opens up all kinds of opportunities for alternative financing vehicles, which are able to find deals more easily, have capital available at a time of liquidity shortage, are more flexible in terms of requirements and are now more competitive as the spread is narrowing compared to traditional banking. DEXTER starts 2023 in pole position.
