29/05/2014 – Cinco Dias
“It will take some time but should be back quite fast”, assures subsecretary for the Economic Affairs, Miguel Temboury, on being asked when the financing in the property sector would return.
New regulation forged by the Government will be crucial to achieve that as it offers incentives to banks to swap the debt of insolvent real estate firms for a share in the stake. That in turn would allow quicker deleveraging of the companies and obtaining financing again, in medium-term.
José Manuel Galindo, director of the Spain´s Association of Developers-Builders (or APCE by its acronym in Spanish) agrees with Temboury but also remarks that “the correction of assets values would not have gone so far” if the banks had been forced to shed the repossessed property earlier.
Moreover, Galindo said the lively interest of foreign investors in the Spanish property has brought “safer equity”, referring especially to the recent investments of the Socimis (Spanish REIT firms) and family offices. In his opinion, land prices are to fall further this year settling a very good target for the reviving market.
Original article: Cinco Días (by Juande Portillo)
Translation: AURA REE