"The professionalisation of the sector and the generation of trust are playing a central role".
It has been said, in colloquial terms, that in recent years alternative finance has managed to 'steal' a 10% share of the market from traditional institutions, and the data are incontrovertible.
Consultancy firms such as KPMG have warned that "the entire financing structure of the real estate sector is going to change"; and that "until now banks were not very susceptible to let alternative financing in, but we are seeing more and more flexibility in this regard". The firm added that "traditionally, the real estate sector in Spain has relied heavily on the banking sector for its financing".
However, it points out that "the growing standardisation of financing instruments for developer loans and the strong regulatory and capital restrictions of financial institutions are causing them to focus on other sectors and more profitable products (...) in this new environment, a space is opening up that is not covered by traditional financial institutions, where investment funds become relevant players in the alternative financing and co-investment market for developers, thus responding to an unmet demand".
DEXTER has been proving over the last 5 years, and with professionals with more than two decades of experience in the sector, that alternative financing with private capital has a growing market penetration. The professionalisation of the sector and the generation of trust are playing a central role, and the real estate groups themselves are more financially educated.
In this regard, the Director of the Risk Department at DEXTERJosé Enrique Chasserot, points out that "Every day more and more developers come with a flexible financial structure, with tranches, in which a part of the operations and projects is covered by traditional bank financing and another part is awarded to us, as financial intermediaries, to be covered by private capital. The important thing is the final success, and this often depends on the speed and agility that we bring to the real estate and construction sector".concludes the company's executive.
