— Aleo Christopher
LUGANO, SWITZERLAND, November 28, 2022 /EINPresswire.com/ — Real estate securitization is a market that offers good prospects, even if the financial market does not yet seem to fully grasp its potential. These findings clearly emerge from the analysis of the financial markets in recent months and are increasingly attracting the interest of financial players.
The overall amount of transactions is growing, particularly in the real estate securitization sector. This particular type of securitization provides that the transaction manager (or spv) can buy both the property and the cash flows resulting from its income first and then from its sale: the transaction can be financed by issuing of titles abs.
The guarantee and security of the entire operation are also ensured by the appointment of a master servicer, who is responsible for managing the operational aspects of the operation, and the appointment of a real estate expert, who guarantees the competence and qualifications to perform management. and administrative tasks.
As with “classic” securitization, real estate securitization requires the predictability of cash flows from the real estate underlying the transaction. Only in this way is it possible to guarantee the payment of abs coupons and thus the satisfaction of investors.
Thus, although any real estate can, at least in theory, be securitized, to structure a successful project, it is necessary to start from a project that has all the administrative authorizations necessary to achieve the objectives set within a certain time. .
The need to start the process of decarbonising all real estate assets in the European Union by 2030 could represent a turning point for the real estate securitization market. In fact, thanks to this instrument, many buildings in Italian territory can be upgraded, also to the energy level required by the standards. The consequence will be a significant redevelopment of the urban fabric, with numerous and generalized investments throughout the territory: a market that offers significant growth prospects while it is becoming difficult for investors to move around to protect their earning capacity.
The changes introduced with the 2019 finance law have enabled svp to carry out transactions to purchase real estate subject to securitization without the need to become assignees of a loan and to create an ad hoc vehicle which does not had only the function of holding the real estate object of the operation. This has led to considerable time saving and simplification of procedures, which has made this instrument even more attractive for companies and investors.
ISwiss Securisation spa, a company of the iSwiss banking group, is also part of this constantly changing landscape. It has been particularly active in the real estate securitization sector in recent months, going so far as to conclude several transactions for a total amount of 6.3 billion euros, divided into 4 different vehicles.
Very interesting are the thoughts of iSwiss CEO Christopher Aleo, for whom: “Real estate securitization is definitely the tool of the future. Even if until now it was little known to the general public, both because of the complexity of the operations and the costs. The iSwiss securitization spa, master servicer and arranger, with the support of Legal Credit and other leading consulting firms, rather aims to provide a simple and clear view of the mechanics of securitization and important new events that have occurred in this sector.”
Christopher Aleo continues: “Securitisation, also in real estate, is set to be a veritable tsunami in the financial world in the years to come. Times change quickly and so do markets, so be ready for new challenges and seize market opportunities.
Andre Anderson
Euronewspress JSC
+971 50 947 3422
[email protected]
