Deutsche Pfandbriefbank has cautiously increased the pace of its new real estate lending during the course of the first nine months of 2010.
Deutsche Pfandbriefbank has cautiously increased the pace of its new real estate lending during the course of the first nine months of 2010.
The nationalised German property and public finance lender said on Tuesday that it carried out 51 real estate financing transactions with a total volume of EUR 2.4 bn as it maintained its 'selective' lending approach in the first nine months of 2010.
New commitments accounted for EUR 800 mln of the total, with the other EUR 1.6 bn granted for loan extensions of more than 12 months. The average loan-to-value of the loans is 66% and the average maturity is 3.9 years.
The bank said 34% of the loans granted in the first nine months of 2010 were granted in Germany, down from 63% in the third quarter of 2009.
In contrast the share of CEE loans shrank to 2% this year from 16% last year. The share of UK loans has grown from 5% to 19%; while France - which was included in the 8% for the rest of Europe in 9m 2009 - reached 27% in the first nine months of this year.
The pace of loan activity rose significantly in the third quarter, with 19 transactions totalling EUR 1.4 bn, compared to the first half of the year when Deutsche Pfandbriefbank carried out 32 deals with a total value of EUR 1 bn. There was EUR 500 mln of new business in each of the first two quarters of this year, with extensions accounting for 70% of the total.
Deutsche Pfandbriefbank carried out slightly more lending in the first nine months of 2009 compared to the same period this year. The bank conducted 52 real estate lending transactions totalling EUR 2.7 bn. However, EUR 2.4 bn, or 89%, related to extensions of existing loans. The average loan-to-value at the time was 68% - 75% for extensions of more than 12 months, and 58% for new commitments.
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