German Developers Looking for Capital Providers

For foreign investors wishing to gain a foothold in Germany’s real estate market, a window of opportunity has just opened. That is because a lot of developers are in the market looking for capital providers. Steep increases in interest rates and construction costs have stalled a number of property developments, and are delaying the exit from many investments. The current market environment has made both conventional bank loans and mezzanine financing arrangements virtually impossible to obtain without high capital adequacy requirements, high prelet ratios or forward sales ratios, and generally lender-friendly terms and conditions.