Despite all the talk of recession, some real estate lessors in
southern Europe are positively thriving.
A particular success story is Greece’s Piraeus Leasing which in
recent months saw its real estate leasing arm grow to form 70
percent of its overall activities. Indeed, towards the end of 2008
it signed its biggest deal ever – a €100 million, full payout
20-year real estate lease to several Greek supermarkets.
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Even Spain, where new constructions in 2008 were down 43 percent
year-on-year, saw real estate leasing grow year on year in 2008 by
2 percent, despite a slight drop of €0.3 billion to €1.6 billion in
the first half of last year. Real estate leasing represents around
19 percent of the country’s overall leasing industry.
This was reflected in better performances of some companies.
BBVA, which has a market share of 15 percent, in 2008 financed
leasing projects totalling some €2.4 billion, of which €519 million
was used for real estate financing.
In France real estate leasing, known as crédit-bail immobilier,
grew steadily during the first half of 2008, according to Crédit
Agricole (up to date figures were not available at time of going to
press).
This followed a 10 percent year-on-year growth in 2007.
Industrial buildings is the largest segment of the country’s
real estate leasing business, totalling some €2 billion.
This grew 13 percent in 2006-2007 while commercial buildings
grew 40 percent during this period. These upturns were offset by a
downturn in the hospitals and nursing homes leasing segments.
Market leader Crédit Agricole Leasing has an approximately 20
percent market share, and around 23 percent of its operations are
related to real estate leasing at present.
It plans to target the professionals sector, an area that
“represents a real potential”, the company said.
Typical deals it signs are for head offices, supermarkets,
warehouses and schools. It is also the only lessor in France to
have leased gendarmeries barracks, and has signed 100 deals of this
kind to date.
Crédit Agricole bumped off Sogebail, part of Société Générale,
from the number one slot in real estate leasing in France.
Sogebail has recently embarked on a strategy of financing green
projects, hence its decision to have all of its real estate
projects certified as sustainable by French organisation
CERTIVEA.
