EANS-News: Hypoport-subsidiary Dr. Klein presents good figures and new solutions in talks during the EXPO REAL 2009
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5 October 2009: Dr. Klein is clearly setting itself apart from its competitors in the marketplace with a growth rate in excess of 30 percent for all financing transaction settlements over the last 12 months. The volume in the most important sub-segment - long-term new business - even increased by 75 percent. The good figures are the result of the in-depth understanding of the sector that the financial services provider has been building since 1954, combined with its ability to flexibly adapt to new market conditions. The developments of the market leader will be addressed in more detail during a theme discussion at the EXPO REAL.
The total volume of financing transactions arranged by Dr. Klein increased by 30 percent over the last twelve months from EUR 1,332 million (Q4/2007-Q3/2008) to their current level of EUR 1,750 million (Q4/2008-Q3/2009). The 75 percent increase from EUR 800 million to EUR 1,408 million in long-term new business - the most important sub-segment - is an even better reflection of this positive development.
Good reasons for good figures Dr. Klein has clearly distanced itself from the general developments in the marketplace - since the financial crisis started gaining in intensity a year ago. Hans Peter Trampe, responsible member of the management board, attributes these good figures to a number of reasons. Potential borrowers are still finding it difficult to identify who is nowadays willing to lend money. Thanks to its extensive network and the relationships of trust that the market leader has built up over the years to potential lenders, Dr. Klein can provide its clients with the necessary information. Creating this market transparency is, however, just one of the important success factors. Impartial advisory services that help clients, among other things, to optimise their interest rate and collateral structures also contributed to the positive result. In Trampe's opinion, these services, in particular, are an absolutely crucial aspect of addressing the demand for financing products, given the marked increase in margins at high loan to value ratios.
New solutions for new market conditions The news from the financial products marketplace is, however, not all negative: "Many insurance companies and pension funds are discovering the benefits of the real estate sector as a comparatively low-risk asset class. And some banks who scorned the tight margins offered by such business in the past are now learning to appreciate the solid strength of the sector", is how Trampe describes the current market situation. Dr. Klein offers innovative solutions to these new market players: According to Trampe: "Bearer bonds issued by the borrowers even enable us to service lenders who are not actually allowed to engage in credit business themselves".
Success also extends to large-scale financing transactions Over the past 12 months, Dr. Klein has been particularly successful in financing large deals. "The market is particularly narrow at this end. The "why not take a bit more?" attitude of former times has now been replaced with "the more you want the more it costs". Only very few lenders are capable of financing 50 million Euros or even more without difficulties. Dr. Klein therefore compiles syndicates to arrange the financing of large deals, but without binding the individual lenders to each other as is often the case with classic bank syndicates. The dependency on a syndicate or the lead manager of the same is eliminated, thus giving the borrower much more independence than would be the case with a classic syndicate management structure.
Discussion at the EXPO REAL 2009 Trampe will provide more detailed explanations with special focus on the new solutions at the EXPO REAL. He will be addressing new financing approaches and opportunities in the theme discussion with journalist and presenter Miriam Beul on Monday, 5 October 2009. The discussion entitled "How are major real estate deals financed nowadays? New approaches, new opportunities!" will take place at the BSI booth, Hall B2, Booth 220 on Monday, starting at 3:30 p.m.
+ + + Die Dr. Klein & Co. AG, a wholly owned subsidiary of Hypoport AG, which is listed in the Prime Standard, can be found in Hall B2 at Booth 220 at the EXPO REAL. + + +
About Dr. Klein The Corporate Clients business unit at Dr. Klein & Co. AG was set up in 1954 to develop provider-neutral financing and insurance solutions for companies and municipalities. The German residential industry constitutes the largest client group; Dr. Klein leads the market for arranging loans in this sector. The range of offered services encompasses the organisation of low-cost loans and the provision of advice on optimising financing structures, right up to the development of customised insurance solutions. In providing these services, Dr. Klein makes the best use of its network consisting of a large number of banks, insurance companies and pension funds. Our clients benefit from the synergies within Hypoport Group, for example when using the EUROPACE-WoWi portfolio management system or when procuring bank-neutral financing on the capital market. In doing so, assets valued far in excess of one billion Euros are re- financed and insured each year. Regardless of whether private clients are looking for current accounts, call money, insurance policies, financial investments, mortgage financing or private loans, Dr. Klein can provide them with just the right product to meet their individual requirements.
Further inquiry note:
Michaela Reimann
Group Communications Manager
Telefon: +49(0)30 42086-1936
E-Mail: michaela.reimann@hypoport.de
Branche: Financial & Business Services
ISIN: DE0005493365
WKN: 549336
Börsen: Frankfurt / regulated dealing/prime standard