Online platforms could penetrate and change the real estate lending industry, bringing new sources of capital, according to senior property banker Christof Winkelmann.
Winkelmann, the management board member for structured property at Aareal Bank, was speaking as the German bank announced at EXPO REAL that it is taking a non-controlling interest in BrickVest, a start-up which matches senior, mezzanine and equity investment opportunities with investors.
Investors can choose whether they want senior or mezzanine debt, or equity in deals.
Winkelmann says a key point about BrickVest, headquartered in London, ‘is that it is the only online platform in the European property sector which is regulated. They are regulated, plus they have the right real estate know-how, banking knowledge and IT know-how.’
He says that Aareal will help by ‘bringing BrickVest an international perspective and insight.’ Aareal gets to participate in a future digital model which could become increasingly important for property financing in the next few years, he adds.
Aareal lends in more than 20 countries: the latest is Australia where the listed bank will shortly announce its first loan.
German bank Berlin Hyp is also an investor in BrickVest. The online business was set up by Thomas Schneider and Eammanuel Lumineau. Since 2015, it has provided exposure to the capital structure of €2 bn of deals.
Separately, Berlin Hyp announced that it is taking a stake in Berlin-based 21st Real Estate as part of its strategy to invest in new technologies. 'The focus is on the digitalisation of real estate valuation, in particular by jointly developing data models based on artificial intelligence,' explains Sascha Klaus, CEO of Berlin Hyp.
The two companies have also agreed on a full-scale strategic cooperation. The focus is on digitising real estate valuation, in particular by jointly developing data models based on artificial intelligence.
So far, none of the assessment tools currently available on the market meet the banking sector's requirements concerning their integration into an optimised and efficient lending process. 'The strategic investment in 21st Real Estate is therefore a further, significant milestone towards notably driving digitisation forward,' Klaus continues. 'We are delighted to be in partnership with 21st Real Estate, one of the most experienced players in the proptech industry.'
