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The German Pfandbrief banks have specialized to a large degree in financing commercial property. Investors can particularly rely on the Pfandbrief banks and their professional know-how in this field.
Besides the financing of residential housing units houses commercial property lending is the second important pillar of the real estate loan business of German Pfandbrief banks. With a total market share of approx. 46 % the vdp-member banks represent the leading financiers of commercial property in Germany. At the end of 2004 the mortgage loans granted by the Pfandbrief banks for commercial property amounted to more than 209 bn. EUR.
Pfandbrief banks finance a wide range of commercial property. Traditionally the banks however focus on financing property with various types of usage. Therefore office and industrial buildings represent more than 80% of the by far largest part of the mortgaged properties. In contrast to that Pfandbrief banks restrain their activities of financing property with limited possibilities of other usage or in case of so-called development projects.
The average loan amount for financing commercial property is approx. 6.9 m. EUR (domestic business). This demonstrates that Pfandbrief banks do not only finance exclusively large-volume property, but indeed count small and medium-sized companies among their customers when financing commercial and industrial buildings. |
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