HSH Nordbank to triple new lending in 2012

German property financier HSH Nordbank said it plans to boost new lending by close to EUR 3 bn in 2012 following an expected new business volume of EUR 1 bn this year.

HSH Nordbank said it would continue to focus on the German market, in particular northern Germany and the metropolitan regions. At the same time, the bank is withdrawing from international markets but will see existing contracts through to maturity.

HSH Nordbank’s total property financing business currently amounts to around EUR 12 bn, of which about EUR 2 bn is non-German.

‘Now that it is clear in which direction things are going, we will drive forward our new business in a risk-conscious but concerted way,’ said Peter Axmann, head of HSH Nordbank’s real estate division.

HSH Nordbank’s clients include professional property investors, project developers and construction firms.

HSH Nordbank said it had also carried out a survey of the German residential market showing that demand in the western growth regions currently exceeds supply despite increasing construction activity. ‘We expect housing demand to grow by 0.2 to 0.3% nationwide in the medium term, and by an even higher 0.4 to 0.6% in the big cities,’ Axmann said.