Hamline Restoration – Hamline Midway History http://hamlinemidwayhistory.org/ Tue, 22 Nov 2022 08:01:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://hamlinemidwayhistory.org/wp-content/uploads/2021/08/hamline-midway-history-icon-150x150.jpg Hamline Restoration – Hamline Midway History http://hamlinemidwayhistory.org/ 32 32 HDFC Bank to make significant investments in EV loans https://hamlinemidwayhistory.org/hdfc-bank-to-make-significant-investments-in-ev-loans/ Tue, 22 Nov 2022 08:01:49 +0000 https://hamlinemidwayhistory.org/hdfc-bank-to-make-significant-investments-in-ev-loans/ Strong points : Despite some setbacks in the auto industry, HDFC Bank is looking to triple its funding for electric vehicle (EV) purchases in the next three years. Tata Motors produces around 80% of the cars financed by HDFC Bank, with the remaining 20% ​​going to MG Motors and Hyundai. Despite some setbacks in the […]]]>

Strong points :

  • Despite some setbacks in the auto industry, HDFC Bank is looking to triple its funding for electric vehicle (EV) purchases in the next three years.
  • Tata Motors produces around 80% of the cars financed by HDFC Bank, with the remaining 20% ​​going to MG Motors and Hyundai.

Despite some setbacks in the auto industry, HDFC Bank is looking to triple its funding for electric vehicle (EV) purchases in the next three years. This is due to an initial assessment that the loans are proving profitable.

The banking institution aims to triple the ebook dimension by 2025 after initially testing the waters with loans for 589 EV purchases and an ebook dimension of 5,100 crores.

According to Vikas Pandey, Head of Auto Loans at HDFC Bank, “We are actively pushing financing for electric vehicles in line with our goal to become carbon neutral by 2031-32. We are industry leaders in passenger vehicle financing. We finance 15 to 17 electric vehicles out of 100 sold. We therefore have a market share of almost 15%.

According to the data, 3,800 electric passenger vehicles were purchased in October and HDFC Bank financed 589 of these vehicles. In October, the financial institution disbursed similar loans of 170 crores.

According to Pandey, “We are seeing at least a 2.5x growth this year in terms of the amount of vehicles financed. The numbers are expected to increase from now on and we expect a 3x increase over the next three years. We want to have a market share of over 20% by 2025.”

The finance company offers eight-year mortgages with interest rates starting at 8.05%. The typical mortgage note size is Rs 17 lakh. As access to charging infrastructure continues to be a barrier to widespread adoption of electric vehicles across the country, 80% of demand is concentrated in metropolitan areas and other hard-to-reach locations.

In India, there are 2,500 EV chargers spread across 270 cities. In Maharashtra, there are about 500.

According to Pandy, Tata Motors product approximately 80% of automobiles financed by HDFC Bank, with the remaining 20% ​​going to MG engines and Hyundai. The market is set to grow with the entry of Chinese competitor BYD in India and M&M which is expected to introduce its electric vehicle.

19,500 electric passenger cars were purchased in the country last year. Until October this year, 20,500 cars had been purchased.

Less than 1% of passenger cars on the road today are electric vehicles.

By 2030, India’s electric vehicle finance market is expected to reach $50 billion (INR 4.1 lakh crore), with 30% of personal vehicles, 70% of commercial vehicles and 80% of two- and three-wheelers of the country with an electric motor. powertrain.

Several Indian banks offer green car loans, a lucrative financing option for consumers looking to purchase zero- or low-emission vehicles. These green auto loans offer lower interest rates, among other benefits. Banks such as SBI (Green Car Loan), Union Bank (Union Bank Green Miles), Axis Bank currently offer these loans.

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Senate investigates Dev’t Bank’s uneven disbursement of N500bn loans https://hamlinemidwayhistory.org/senate-investigates-devt-banks-uneven-disbursement-of-n500bn-loans/ Wed, 16 Nov 2022 19:48:19 +0000 https://hamlinemidwayhistory.org/senate-investigates-devt-banks-uneven-disbursement-of-n500bn-loans/ The committee should be chaired by Senator Sani MusaChairman, Senate Committee on Banking, Insurance and Other Financial Institutions. The other committee members are Senator Ibrahim Danbaba (PDP-Sokoto), Senator Ayo Akinyelure (PDP-Ondo), Senator Matthew Urhoghide (PDP-Edo), Senator Mohammed Ndume, Senator Uche Ekwunife (PDP-Anambra) and Senator Sadiq Umar (APC-Kwara). The News Agency of Nigeria (NAN) reports that […]]]>

The committee should be chaired by Senator Sani MusaChairman, Senate Committee on Banking, Insurance and Other Financial Institutions.

The other committee members are Senator Ibrahim Danbaba (PDP-Sokoto), Senator Ayo Akinyelure (PDP-Ondo), Senator Matthew Urhoghide (PDP-Edo), Senator Mohammed Ndume, Senator Uche Ekwunife (PDP-Anambra) and Senator Sadiq Umar (APC-Kwara).

The News Agency of Nigeria (NAN) reports that the committee has two weeks to report to the Senate.

The upper house also urged the bank to ensure fair disbursement of the loan across the country’s six geographies.


“We urge the bank to expand its lending facilities beyond the five sectors already captured,” he said.

Moving the motion, Ndume said the top five sectors being considered for the loan were oil and gas (42.0%), manufacturing (16.0%), agriculture, forestry and fishing (7, 2%), trade and commerce (6.3%). ) and transportation and warehousing (3.5 percent).

Ndume alleged that there was huge disparity and uneven disbursement of a half trillion naira loan to the country’s six geopolitical zones and states in 2021 by the DBN.

He mentioned Lagos as the main beneficiary with 47% of the total loan while the entire northern region got 11%.

The lawmaker said: “The bank’s 2021 annual integrated statutory report obtained on July 13 from the organization’s website says the bank was able to disburse a loan worth just 483,000,000 naira, of which only 11% went to the 19 states. from northern Nigeria, while 47 percent went to Lagos alone.”


Vice-President of the Senate Ovie Omo-Agegewho chaired the plenary, with the support of the senators, adopted the motion unanimously.

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Sri Lanka to take China Exim and Nick Leeson loans from major SOEs https://hamlinemidwayhistory.org/sri-lanka-to-take-china-exim-and-nick-leeson-loans-from-major-soes/ Mon, 14 Nov 2022 11:05:41 +0000 https://hamlinemidwayhistory.org/sri-lanka-to-take-china-exim-and-nick-leeson-loans-from-major-soes/ ECONOMYNEXT – Loans extended by the Exim Bank of China to several state-owned enterprises and government-guaranteed loans taken out by Ceylon Petroleum Corporation will be taken by the central government, President Ranil Wickremesinghe said. The Exim Bank of China has financed a coal-fired power plant for the state-owned Ceylon Petroleum Corporation, which has been determined […]]]>

ECONOMYNEXT – Loans extended by the Exim Bank of China to several state-owned enterprises and government-guaranteed loans taken out by Ceylon Petroleum Corporation will be taken by the central government, President Ranil Wickremesinghe said.

The Exim Bank of China has financed a coal-fired power plant for the state-owned Ceylon Petroleum Corporation, which has been determined by the Auditor General to be perhaps the best investment Sri Lanka has made since the hydropower plants of the multi-purpose project of Mahaweli.

Sri Lanka Airport has also secured a loan to develop Mattala Airport, considered a “white elephant”.

The Port Authority of Sri Lanka has received a loan from the Exim Bank of China for the Port of Hambantota.

China paid US$1.1 billion in cash for a stake in the port.

However, Sri Lanka is not used to settling Chinese debt. Instead, “more expensive” loans from other parties were settled.

The Ceylon Petroleum Corporation has about $2.0 billion in loans taken out with state banks after the central bank printed money to suppress rates and target an output gap, triggering currency shortages.

Sri Lankan analysts called them Nick Leeson loans.

Singaporean Prime Minister Lee Kuan Yew referred to this debt contracted by soft-pegged countries as “hedging loans” a day before the announcement of the creation of a currency board on August 26, 1966 in Parliament by the Minister of Foreign Affairs. Finance at the time, Lim Kim San.

“Now we are going to run a monetary system, which means that as soon as we earn less, we spend less,” Prime Minister Lee told a trade union on the evening of August 25. “And I say we do or we die because this is a society with an open, exposed market.

“If you start playing around with money and you start printing money, and then you don’t really have any money to spend and you start borrowing to cover it, you’ll end up in scarcity and bitterness.

After committing to the stimulus (targeting the output gap), policymakers are then forced to put the pauses because the inevitable consequences ensue.

Related

Shocking revelation on how Sri Lanka’s CPC ended up in multi-billion dollar debt

The IMF taught the central bank of Sri Lanka to calculate the output gap. Sri Lanka is now in “Okay, stop it; Pause; pull the money back”, a mode that the same economists of the “lost generation” call “stabilization”.

Sri Lanka defaulted after borrowing billions of dollars from both China and sovereign bondholders as hedging loans under flexible inflation/targeting differential production triggered currency shortages.

Under an IMF program, a new monetary law allowing for flexible inflation targeting or discretionary policy to “play with the currency” as has happened over the past 7 years, triggering three currency crises in quick succession, must be legalized. (Colombo/November 14, 2022)

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Tonik rolls out new all-digital loans https://hamlinemidwayhistory.org/tonik-rolls-out-new-all-digital-loans/ Wed, 09 Nov 2022 14:10:41 +0000 https://hamlinemidwayhistory.org/tonik-rolls-out-new-all-digital-loans/ Tonik, the Philippines’ first neobank, continues to accelerate financial and credit inclusion with the launch of its two new loan products, Flex Loan and Big Loan. Building on the success of its all-digital savings wallet and the successful launch of its first loan product, Quick Loan, the new products are expected to position Tonik among […]]]>

Tonik, the Philippines’ first neobank, continues to accelerate financial and credit inclusion with the launch of its two new loan products, Flex Loan and Big Loan.

Building on the success of its all-digital savings wallet and the successful launch of its first loan product, Quick Loan, the new products are expected to position Tonik among the nation’s pioneering digital lenders with loans to suit all needs. .

Fast, convenient, and paired with low fixed interest rates, Flex Loan gives customers the freedom and flexibility to pursue their dream purchases and have the perfect experiences for the start of another year. Tonik’s best priced unsecured loan to date, Flex Loan offers 2.49% monthly interest for up to 24 months, on a loan of up to Php 250,000. No collateral is needed as employed clients would only need to provide their latest bank statement and proof of income.

A type of home equity loan, Big Loan offers a unique versatile installment loan that allows a borrower to utilize the equity in their home. This property is then pledged to the bank as collateral, securing an amount of up to Php 2,500,000.

Relatively new to the Philippines, this type of loan product continues to be popular in more developed markets like the United States. It is mainly used for home improvement, investment for family businesses and debt consolidation under a low interest rate product.
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With Big Loan, the first fully digitized collateral product on the market, customers only need to visit the Tonik Hub once to officially sign loan and mortgage documents. Offering the fastest approval time in the market in a fully digital manner within minutes of loan application and disbursement within seven (7) working days of submission of documents, loan proceeds are disbursed to the accounts of Tonik savings from customers. No property appraisal fees are charged and no third party appraisals are required.

“Powered by our pure digital platform and the most competitive rates on the market, Flex Loan and Big Loan provide accessible, secure and much-needed credit for the huge underserved market in the Philippines,” said Tonik Founder and CEO. , Greg Krasnov. “With these new loans, we are excited to accelerate efforts to accelerate credit inclusion in the country.”

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Retail lending hit a festive high in September https://hamlinemidwayhistory.org/retail-lending-hit-a-festive-high-in-september/ Mon, 07 Nov 2022 03:08:15 +0000 https://hamlinemidwayhistory.org/retail-lending-hit-a-festive-high-in-september/ Bombay : Growth in personal loans jumped 20% in September, the fastest since the covid-19 epidemic in 2020, unfazed by rising borrowing costs, signaling a robust recovery in consumer demand during the holiday season. Loan demand was seen across all categories for purchases of vehicles, consumer durables and homes, the mainstay of personal credit. Show […]]]>

Bombay : Growth in personal loans jumped 20% in September, the fastest since the covid-19 epidemic in 2020, unfazed by rising borrowing costs, signaling a robust recovery in consumer demand during the holiday season.

Loan demand was seen across all categories for purchases of vehicles, consumer durables and homes, the mainstay of personal credit.

Show full picture

Buyers Revenge

Home loans, which account for nearly half of all personal loans, rose 16% to 18.05 trillion between September 24, 2021 and September 23, 2022, according to data released by the Reserve Bank of India.

The other personal loans category, which accounts for 26% of all personal bank loans, grew even faster at 24.4% for 9.73 trillion as of September 23.

The personal loan category mainly includes loans for domestic consumption, medical expenses, travel, weddings, other social ceremonies and loans for debt repayment.

Growth in all sub-segments brought total retail loans to more than 37 trillion at the end of September.

“According to the High Frequency Indicators (HFIs) of the past few months, private consumption – especially urban demand – has remained healthy,” RBI Governor Shaktikanta Das said at a conference organized by the groups on Wednesday. pressure Fici and the Association of Indian Banks.

Contact-intensive services continued to make a smart rebound, helped by the unhindered resumption of business and the full-fledged celebration of festivals after two and a half years, Das said.

“You see a huge turnout. We all saw it during Ganpati festival in Maharashtra and other places and Diwali. As the data comes in, we see that retail sales of various white goods and other fast-moving consumer goods have improved significantly,” he said.

RBI data showed consumer durable loans rose 60.7% in September from a year earlier.

Bankers said they witnessed consumer demand across all segments during the festive season as India braced for a full-fledged celebration after two years of muted festivities. Demand for car loans also rebounded in September as part of an 11% increase in sales.

“Not just housing, this time around there is demand for consumer durables as well as car loans,” said the retail credit manager at a public sector bank, speaking on condition of anonymity.

He added that while the retail sector’s asset quality is sound at the moment, the sector needs constant attention to ensure people repay on time.

Mint reported on Oct. 24 that for 13 banks that had reported quarterly results so far, covid-19 overhaul loans worth 10,019 crores – mostly to individuals – went sour in the six months to September 30.

In an Oct. 31 note, analysts at ICICI Securities said overall retail credit growth momentum continues.

From the additional monthly increase in retail credit of 54,100 crore in September, 37% were home loans, 9% car loans, 4% education loans, 7% were fixed deposit advances and 38% other personal loans.

“Over the past 12 months, retail lending has seen an annual increase of 6.1 trillion, of which 41% was for housing, which is lower than its 49% share in total retail sales,” the ICICI Securities report said.

Others said recent industry data on credit deployment showed the wave of recent repo rate hikes had failed to dampen demand.

“While a weak base may be partly responsible, credit growth looks strong this year in the first six months. Other main reasons are a return to pre-pandemic conditions and a recovery in demand. Like our demand should remain fairly insulated from slowing global growth, and with the onset of the holiday season (October to December), we believe credit demand will also remain stable in the second half of the year,” said Sonal Badhan, Economist , Bank of Baroda.

Badhan warned that downside risks could arise from the impact on export demand if major economies slip into recession.

Catch all industry news, banking news and updates on Live Mint. Download the Mint News app to get daily market updates.

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Don’t mortgage countries for loans, development banks tell Africa https://hamlinemidwayhistory.org/dont-mortgage-countries-for-loans-development-banks-tell-africa/ Fri, 04 Nov 2022 13:30:00 +0000 https://hamlinemidwayhistory.org/dont-mortgage-countries-for-loans-development-banks-tell-africa/ By JACKSON MUTINDA Development finance institutions in Africa have warned governments against using countries’ natural resources to support infrastructure lending, as this means mortgaging their future with creditors. Instead, they want states to explore public-private partnerships to fund their development projects. At a press conference in Abidjan, Côte d’Ivoire, during the Africa Investment Forum, the […]]]>

By JACKSON MUTINDA

Development finance institutions in Africa have warned governments against using countries’ natural resources to support infrastructure lending, as this means mortgaging their future with creditors. Instead, they want states to explore public-private partnerships to fund their development projects.

At a press conference in Abidjan, Côte d’Ivoire, during the Africa Investment Forum, the heads of eight multilateral financial institutions in Africa said that most states on the continent were heavily indebted and that the volatility of the global economy was aggravating their debt situation, hence the need to borrow slowly to explore cheaper ways of financing development.

Multilateral development banks work with makeshift funds to finance infrastructure development.

Repay infrastructure loans well

Led by the African Development Bank (AfDB), the organizer of the Africa Investment Forum, they vouched for the creditworthiness of the continent, noting that Africa has done well to repay its infrastructure loans.

Dr. Akinwumi Adesina, President of the AfDB, noted that Africa has the lowest default rate on infrastructure loans in the world, at 5.5%. The largest defaulter, according to Moody’s Analytics, is Latin America at 12.9%, followed by Asia at 8.8%, Eastern Europe (8.6%), America Northern (7.6%) and Western Europe (5.9%).

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“We have to start looking at infrastructure as an asset for us. The question of investment risk in Africa is exaggerated. The issue is not the risk, but the risk-adjusted return and how you manage the risk,” Dr. Adesina said.

“So we don’t have to reduce the risk of bias. In other words, perception risk is not what we should be minimizing. But we don’t want countries to go into too much debt to build infrastructure, it will only make their debt situation worse. So they need to open up the space to the private sector and I strongly believe that we need to have, at a minimum, public-private partnerships: allowing the private sector in energy, transport, medical, infrastructure, etc. That private sector space be expanded for infrastructure.

Strengthening Africa’s capacities

The lenders have pledged to work with African governments to build the continent’s capacity in agriculture, renewable energy and electric car manufacturing.

On agriculture, they will support special agro-processing zones across Africa to make agriculture a wealth sector.

On electric cars, banks are looking to finance value chains for minerals making parts and batteries like nickel, cobalt and lithium.

“We are going to pool our resources, technical resources in terms of technical assessment, our project development capacity here, our co-financing capacity here with others to be able to develop battery value chains on the continent and attract investors to manufacture the cars,” said Dr. Adesina.

Solar energy

In energy, the institutions plan to invest 20 billion dollars to build 10,000 megawatts of solar energy in 11 countries, which will supply electricity to 250 million people.

“There is an over-concentration of solar panel manufacturing around the world. As Africa tries to maximize and optimize renewable energy – we have 11 kilowatts of solar power – so we have collectively decided that we will support the design, support and planning for the manufacture of polysilicon and solar panels said Dr. Adesina.

The institutions are AfDB, Africa50; Africa Finance Corporation, Africa Export-Import Bank, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank and Trade and Development Bank.

They are also pushing the International Monetary Fund (IMF) to channel Special Drawing Rights (SDR) money through them for infrastructure development.

“The world is going through all kinds of challenges right now. The big one, of course, is climate change, Covid-19, the war in Ukraine and what it has done in terms of energy costs, in terms of food prices, inflation… we have a big deficit funding for infrastructure and there is not a lot of money on the table to support developing countries. Special drawing rights are one of the ways to solve this problem,” said Dr Adesina.

The IMF has issued $650 billion in special drawing rights in 2021, which is the highest it has ever issued. But Africa only received $33 billion of that amount.

Multilateral donors have advocated for SDRs to be granted to them to finance growth and poverty reduction programs on the continent.

“I commend the efforts of the IMF for the resilient trust they have, which is great. However, transactions in SDRs will be individual, while multilateral development banks like ours will actually be able to invest the money in SDRs. Now for us $1 SDR will become $4 for the country So if you have $10 billion it becomes $40 billion $20 billion becomes $80 billion So that’s leverage This is very important for the SDR to complement the efforts of the IMF.

“And I think that’s important because when we look at global challenges, we have to ask ourselves: what’s the best way to optimize the global financial architecture, from the IMF to the multilateral financial institutions? If we leverage the SDR fourfold, that’s money we can use to recapitalize and support the Development Bank of South Africa, Africa Finance Corporation, Africa50, Trade Development Bank, Islamic Development Bank and others.

But they called for transparency and accountability in infrastructure funding spending.

“It’s not just how much money you put into infrastructure; it is the efficiency of these expenditures.

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Why office loans are rare and far between – Commercial Property Executive https://hamlinemidwayhistory.org/why-office-loans-are-rare-and-far-between-commercial-property-executive/ Wed, 26 Oct 2022 21:32:26 +0000 https://hamlinemidwayhistory.org/why-office-loans-are-rare-and-far-between-commercial-property-executive/ Lending for new office construction and acquisitions has all but disappeared in recent months. Ongoing financings are often for recently built properties in high growth markets or sub-markets. And those lucky enough to receive financing should expect tighter underwriting and a higher cost of debt. Brad Zampa “The appetite and desire for office finance as […]]]>

Lending for new office construction and acquisitions has all but disappeared in recent months. Ongoing financings are often for recently built properties in high growth markets or sub-markets. And those lucky enough to receive financing should expect tighter underwriting and a higher cost of debt.

Brad Zampa

“The appetite and desire for office finance as a product type has been a 180-degree shift since the second quarter of 2022,” said Brad Zampa, executive vice president of the CBRE San Francisco Capital Markets team specializing in debt and structured finance. “The uncertainty around returning to the officeinterest rate hikes, lack of tenant demand and massive negative absorption eventually led to an almost complete drying up of liquidity. »

During the first half of the year, CBRE financed value-added and stable office assets and portfolios, but the market is now almost non-existent.

“We marketed a vacant office financing in the third quarter and only received three offers with spreads two to three times higher than similar deals six months prior,” he said.

Lenders are reducing leverage across the board, and rising interest rates have tested underwriting, particularly with respect to exit debt service criteria, which may still reduce leverage, Zampa said: “Lenders are just as focused on funding a lower overall last dollar. basis and reducing interest-only periods, preferring amortization to speed up repayments.

The Raleigh Exchange in Raleigh, North Carolina, where DeWitt Carolinas, Inc., recently received funding for 1000 Social, the first office tower. Rendered courtesy of DeWitt Carolinas Inc.

Beyond the economy

All property types are experiencing some liquidity disruption due to the impacts of macroeconomic conditions on financial markets. But the problem for offices is larger and potentially more long-lasting, according to Justin Kennedy, co-founder and managing partner of 3650 REIT.

justin kennedy

“We are certainly not dealing with an excess of new supply built in recent years, which has been the fundamental problem of past crises. said Kennedy, whose Miami-based investment firm creates and manages portfolio loans for relationship borrowers. “This is clearly a ‘demand shock’ and it’s one that’s not even close to playing out yet.”

According Newmark National Office Market in Q2 2022 report, there were 10.5 million square feet of new office deliveries in the second quarter, compared to 12 million square feet in the second quarter of 2021. Office space under construction also fell year-over-year , from 87.5 million square feet in the second quarter of 2021 to 75.8 million square feet. feet in Q2 2022.

In times of recession, office and retail tenants are reluctant to make new office rental commitments. But there is another force at play in the office market.

“Today we are seeing a setback because people don’t want to go to the office anymore,” he said.

For the first 12 months post-pandemic through the summer of 2021, decent funding was available for good offices assets, noted Keith Largay, senior managing director, co-head, Midwest Capital Markets at JLL.

Jamie Woodwell

“What started to change in the second half of last year, and really came into 2022, is that there’s just huge uncertainty about demand and what the characteristics of the demand in the office sector,” said Largay.

According to Jamie Woodwell, vice president of research at the Mortgage Bankers Association, office building starts in the second quarter were down 11% year over year, compared to a 24% increase for multi-family buildings. and 3% for industrial buildings. Retail and hospitality loans rebounded from low levels, while offices continued to lag.

The MBA updated its baseline forecast at the end of July to reflect an anticipated slowdown in overall lending in the second half of the year. MBA expects total commercial and multifamily borrowing and mortgages to fall to $733 billion in 2022, down 18% from $891 billion in 2021.

Woodwell did not have estimates for office-only loans. If the economy went into recession, however, commercial and multifamily borrowing and lending would likely be even more constrained in 2023, he said.

Close a deal

Despite volatility in debt markets, in late September, DeWitt Carolinas secured a $139 million construction loan from alternative lender ACORE Capital for “1000 Social,” the first office tower of The Exchange Raleigh, a project $1 billion, 40-acre mixed-use property in Raleigh, NC Avison Young arranged the financing. The project will eventually include two 12-story office towers totaling 330,000 square feet of Class A office space.

Ed Soccorso

“While there are fewer lenders willing to fund new projects right now, we have strong relationships and a great balance sheet, which always makes things easier on the financing side,” Soccorso said.

He also cited three other factors in favor of the company: 1000 Social is part of the master-planned mixed-use community The Exchange Raleigh has generated a lot of interest; Raleigh continues to be an incredibly attractive market: and DeWitt Carolinas has a significant equity commitment to the project. Once built, the project will include 790,000 square feet of Class A office space; 1,275 residential units; 300 hotel rooms; and 125,000 square feet of retail and restaurant space.

Mixed-use developments also help mitigate a lender’s exposure with diversified products and diversified revenue streams. For office projects only, the flight to quality is a reality and the more recent the building, the more likely the borrower is to obtain financing for the construction or acquisition.

For the few office construction deals underway, tenant pre-lease credit is the starting point for lenders, Kennedy noted.

Source: Newmark National Office Market Report 2Q22

“From there, it becomes how special your location and gear story is,” Kennedy said. “Should there be an element of recourse? If we were dealing with a bank, yes. A debt fund? If the story is good enough, I think not. It will all depend on how clearly “specialty” can be defined as the demand for space in that particular area. »

3650 REIT has not provided an office construction loan since last year, when it financed a property in Houston’s River Oaks district, Kennedy said. The company recently bid on an office building contract in Miami, but its pricing wasn’t aggressive enough to secure the deal. Sponsors are always looking for the right deal.

“If someone came up with a building that had a credit tenant, was in a special location, and we had good confidence about a lease for the rest of the space, I think we would still look into it. “Kennedy said. “It would definitely be a lot more expensive than last year, but we would still look at it.”

Sell ​​or keep?

Investors nearing the end of their business plans must decide whether to sell or hold their assets longer. Largay expects a good number to sell because while the cost of capital will hurt their prices, they know that won’t change in the next 12-18 months or 24 months and, if they wait , they will also have a lower average lease term. Meanwhile, closed-end funds can sell if they run out of extensions on their fund.

Keith Largay

JLL closed in September the sale of an office property in the Dallas market for a four-year-old Class A building, 80% leased. While the owner of 3400 at CityLine in Richardson, Texas could have held the asset for another year or two, adding more value and selling at a better time in the market, they decided it was the right time from a portfolio perspective to sell.

Largay said the buyer, who used loan funds to finance the acquisition, was willing to accept the risk of continuing to lease the building because it was a high-quality building purchased from a lower cost than replacement with good weighted average lease term in a growing market and good submarket.

He said many debt funds are ready to lend on the desk if there are quality real estate demand fundamentals.

“Where they are challenged is that all these debt funds are self-multiplying,” Largay said. “Historically, the main source of leverage has been money banks. Banks in currency centers have significantly reduced their home lending due to regulatory requirements. »

With banks reducing their leverage on all types of assets, many debt funds have to fund their positions with smaller regional banks. Lower internal leverage drives up their cost of capital, which they pass on to borrowers with higher spreads.

Insurance companies and office

Tony Kaufman

Tony Kaufmann, director of the San Francisco office of Gantry, Inc., the largest independent commercial mortgage bank in the United States, said life insurance companies are still considering office offerings, especially those with high quality properties and strong market fundamentals, but the leverage will be lower and rates will be higher. For Gantry, life insurance companies have provided both the largest loan volume and value so far this year.

“I think one of the things that life insurance companies benefit from and why they continue to view office assets selectively is that they are inherently conservative lenders,” Kaufman said. “They are mostly all non-recourse lenders.”

CMBS is still a good source of cash for office assets, Largay said, but activity has fallen due to pricing, which was 6% in September and could rise depending on how interest rates move . For borrowers willing to pay CMBS rates, the market is functional and the debt is available.

In addition to CMBS lenders and some life insurance companies, experts report that some regional banks, credit unions and some unleveraged debt funds are still active in stabilized office deals, but underwriting will be cautious. due to interest rate increases and continued leverage.

“It’s not entirely predictable where we’re headed,” Largay said. “While there is hopefully some upward momentum in cap rates, there will be a bit more success with deals that are shaping up better.”

Read the November 2022 issue of CPE.

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German companies struggle to get loans https://hamlinemidwayhistory.org/german-companies-struggle-to-get-loans/ Mon, 24 Oct 2022 09:09:50 +0000 https://hamlinemidwayhistory.org/german-companies-struggle-to-get-loans/ fast news As many as 28.8% of companies seeking credit in the services sector reported difficulties, around 8.4% of chemical companies and 22.5% of car manufacturers. Smaller businesses and the self-employed have been hit the hardest due to their reliance on bank loans. (AP) Around one in four German businesses seeking new loans report restrictions […]]]>

fast news

As many as 28.8% of companies seeking credit in the services sector reported difficulties, around 8.4% of chemical companies and 22.5% of car manufacturers.

Smaller businesses and the self-employed have been hit the hardest due to their reliance on bank loans. (AP)

Around one in four German businesses seeking new loans report restrictions from lenders as high inflation and concerns over energy supplies rattle Europe’s biggest economy, according to a survey.

“The difficult economic climate is currently making banks more cautious,” said Klaus Wohlrabe, head of investigations at Information ve Forschung (Ifo) on Monday.

“Without new loans, some businesses could struggle for economic survival,” he added.

The figure – 24.3% – is the highest since 2017, said the Ifo institute, which conducted the survey.

As many as 28.8% of companies seeking credit in the services sector reported difficulties, around 8.4% of chemical companies and 22.5% of automakers, Ifo said. In retail, the figure was 15%.

Smaller businesses and solo freelancers have been hit the hardest due to their reliance on bank loans, according to the institute.

Germany heads into recession as energy standoff with Russia, rising prices and supply bottlenecks take their toll, with government predicting 0.4% contraction next year .

READ MORE:
Germany will sink into recession, inflation will soar in 2023, government admits

Source: Reuters

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OZK Bank stock falls, third-quarter earnings miss due to higher provision as loans rise (NASDAQ:OZK) https://hamlinemidwayhistory.org/ozk-bank-stock-falls-third-quarter-earnings-miss-due-to-higher-provision-as-loans-rise-nasdaqozk/ Thu, 20 Oct 2022 20:34:00 +0000 https://hamlinemidwayhistory.org/ozk-bank-stock-falls-third-quarter-earnings-miss-due-to-higher-provision-as-loans-rise-nasdaqozk/ OZK Bank OZK Bank (NASDAQ:OZK) stock has fell 7.6% Thursday after-hours trading after third-quarter earnings missed Wall Street’s estimate as it increased its provision for credit losses due to growth in its loans. “Growth both funded and unfunded loan balances during the quarter contributed to the higher provision for credit losses, which impacted net earnings,” […]]]>

OZK Bank

OZK Bank (NASDAQ:OZK) stock has fell 7.6% Thursday after-hours trading after third-quarter earnings missed Wall Street’s estimate as it increased its provision for credit losses due to growth in its loans.

“Growth both funded and unfunded loan balances during the quarter contributed to the higher provision for credit losses, which impacted net earnings,” the company said.

Its $4.35 billion real estate group’s loan originations, marking its fourth straight quarter of record originations, rose $3.53 billion in the second quarter.

Q3 EPS of $1.08, missing the consensus of $1.17, slipped $1.10 in Q2 and rose $1.00 in the prior year quarter.

Provision for credit losses in the third quarter was $39.8 million, compared with $7.0 million in the prior quarter and profit of $7.5 million a year earlier.

As with most banks, the Fed’s rate hike cycle has led to growth in the NII. Net interest income increased to $294.6m from $265.8m in Q2 and $248.0m in Q3 2021; net interest margin (“ETP”) of 5.03% compared to 4.52% in the prior quarter and 4.16% in the prior year quarter.

OZK Bank (OZK) total non-interest expense of $115.7 million increased from $109.3 million in the third quarter and $110.4 million in the prior year quarter. Payroll and benefits expenses of $57.4 million increased from $54.4 million in the prior quarter and $53.8 million a year ago.

Total loans were $19.51 billion compared to $18.74 billion as of June 30.

Deposits of $20.4 billion, an increase from $19.98 billion as of June 30.

Conference call October 21 at 11 a.m.

Previously, OZK Bank (OZK) GAAP EPS of $1.08 misses $0.09, revenue of $323.78M is greater than $18.69M

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New expansion of small business loans after six-month performance review: Sundaram Home Finance https://hamlinemidwayhistory.org/new-expansion-of-small-business-loans-after-six-month-performance-review-sundaram-home-finance/ Mon, 17 Oct 2022 21:20:00 +0000 https://hamlinemidwayhistory.org/new-expansion-of-small-business-loans-after-six-month-performance-review-sundaram-home-finance/ Sundaram Home Finance, which recently made a foray into small business lending against residential properties, said the segment has the potential to grow well in the coming years. Based on the experience of the next six months in Tamil Nadu, the company will assess and develop plans for expansion in the state and out, Lakshminarayanan […]]]>

Sundaram Home Finance, which recently made a foray into small business lending against residential properties, said the segment has the potential to grow well in the coming years. Based on the experience of the next six months in Tamil Nadu, the company will assess and develop plans for expansion in the state and out, Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance, told FE in a exclusive interaction.

The company’s immediate plan is to open eight more exclusive small business lending offices in Tier 3 and 4 cities of Tamil Nadu by March 2023, bringing the total number of offices to ten.

Sundaram Home Finance, the housing finance arm of Chennai-based NBFC Sundaram Finance, expects to achieve disbursements of Rs 10-15 crore from this segment by the end of the financial year. It is dedicating an exclusive team to executing and exploiting this opportunity and will be hiring 50 people specifically for this segment over the next six months.

Read also : RBI MPC priority: Control inflation rather than growth; Rate hike of 35 basis points likely, 50 basis points not ruled out

Duraiswamy said that while there is still an opportunity to finance houses, the company has seen that there is a need for organized finance for the small business segment in the rural market. In light of business recovery from the pandemic, self-employed business people, shopkeepers, grocers, drugstores, hardware stores, tea shops and others in small towns are seeking working capital loans to expand. their business.

“It’s been in the works for a year. We conducted test marketing in Madurai, Tirunelveli and Salem and received positive feedback from this segment. That led us to this strategic diversification from home loans and real estate loans (LAP) to small business loans and this is a new segment that we have entered. We have just launched an exclusive loan product for this segment whereby we will lend up to Rs 20 lakh to small business owners and traders against residential property,” he said. Interest rates will be above 15% per annum. The duration of these loans is likely to be 5 to 7 years. The EMI will be on the conventional fixed monthly model.

The majority of the company’s more than 100 branches are in Tier 2 and Tier 3 cities where it has provided home and non-home loans (LAPs).

Regarding the challenges, he said that customers in this segment may not have the typical documentation that those in the mortgage segment would have and therefore requires a deep understanding of customers and their business. “We believe the Sundaram experience will come in handy here as our goal has always been to understand customer needs and provide the best customer service,” he said.

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