Corealcredit attracts EUR 550m of new financing in H1

Property financier Corealcredit generated a total of EUR 550 mln in new business during the first half of 2012, a 20% drop on the previous year's volume of EUR 704 mln.

However, the company said it expects new business to increase sharply in the second half, exceeding the first-half figure as well as the previous year when roughly EUR 390 mln of new business was recorded in H2.

'Demand for financing continues to be high; at present a host of attractive financing enquiries are nearing approval, which means that an increase in the new business volume can be expected in the second half of the year,' the company said in a statement.

Profitability improved considerably, with average margins markedly higher than the already fairly profitable margin for the previous year.

Corealcredit, which focuses on financing commercial real estate and residential portfolios, had some EUR 9.3 bn of assets at end-June 2012, including EUR 3.9 bn of property debt.

In the first part of 2012, Corealcredit refinanced EUR 1.15 bn in the capital market, including around EUR 590 mln through the issue of a mortgage Pfandbriefe.