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#09 Sustainable lending

The properties we finance and our business partners have to meet strict standards.

Sound property values, sound business partners

Our core offering includes commercial property financing solutions, especially for office buildings, hotels and shopping centres, as well as logistics facilities and residential properties. We focus on complex, large-volume finance for completed buildings.

Since the average term of the finance provided is five to eight years, the sustainability of the properties involved is very important to us. The same goes when we're choosing business partners: we work with them for long periods and so set high standards for their integrity.

In other words, our financing decisions go well beyond mere lending decisions. Due to the solutions’ long duration and complexity, and the large amounts of money involved, our decision-making process incorporates numerous risk avoidance procedures. These ensure that the conclusions we reach are sustainable.

Our strict requirements for sound property values and sound business partners bring rewards: our credit risk indicator is consistently low and declined even further between 2016 and 2017, from 31 basis points to 29.

What are Aareal Bank Group's strengths in the area of Structured Property Financing and what is this business segment's strategy? For further information, please read the article in our online Annual Report entitled "Urban future. Living in a megacity“.

What we are working on

  • Ensuring a flexible business strategy, e.g. examining the student accommodation asset class
  • The digital transformation initiative in our Structured Property Financing segment
  • Exploitation of further potential in connection with the Mount Street partnership

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