— Aleo Christopher
LUGANO, SWITZERLAND, Nov. 28, 2022 /EINPresswire.com/ — Real estate securitization is a market that offers great prospects, even if the financial market does not yet seem to fully understand its potential. These findings are evident from the financial market analysis of recent months and are increasingly attracting the interest of financial players.
The overall transaction amount is growing, especially in the real estate securitization sector. This specific type of Securitization envisages that the transaction manager (or spv) can simultaneously buy both the real estate and the cash flow arising from its income and later its sale: the transaction can be financed by issuing abs securities.
The guarantee and security of the whole operation is also provided by the appointment of a master service officer, who is responsible for managing the operational aspects of the operation, and the appointment of a property expert, who guarantees the competence and qualifications to manage to execute. and administration tasks.
As with ‘classic’ Securitization, real estate securitization requires predictability of the cash flows of the real estate underlying the transaction. Only in this way is it possible to guarantee the payment of coupons from the abs and therefore investor satisfaction.
Thus, although all real estate can be securitized, at least in theory, in order to structure a project for success, it is necessary to start with a project that has all the required administrative authorizations on its side to achieve the stated goals within to reach a certain time frame.
The need to proceed with the start of the decarbonisation process of all real estate assets in the European Union by 2030 could represent a turning point for the real estate securitization market. In fact, through this instrument, many buildings on Italian territory can be upgraded, also at the energy level required by the standards. The result will be an important redevelopment of the urban structure, with numerous and widespread investments throughout the area: a market that offers important growth prospects when it becomes difficult for investors to move to protect their earning capacity.
The changes made with the Budget Act of 2019 allowed svp to carry out transactions to purchase the property subject to securitizations without the need to make themselves more borrowers of a loan and to use a special purpose vehicle create that only had the function of keeping. the property assets subject to the transaction. This led to significant time savings and a simplification of procedures, making this tool even more attractive to companies and investors.
ISwiss Securisation spa, a company of the iSwiss banking group, is also part of this constantly growing landscape. It has been particularly active in the real estate securitization sector in recent months, going so far as to close several transactions for a total amount of EUR 6.3 billion, divided into 4 different vehicles.
Very interesting are the reflections of iSwiss CEO Christopher Aleo, for whom: “Securitization of real estate is definitely the instrument of the future. Although until now it was little known to the general public, both because of the complexity of operations and costs. The iSwiss securitization spa, master service provider and arranger, with the support of legal credit and other leading consulting firms, instead aims to give a simple and clear picture of the mechanisms of Securitization and the new important events that occur in this sector took place.”
Christopher Aleo continues: ‘Securitization, also in real estate, is going to be a real tsunami in the financial world in the coming years. Times change quickly and so do the markets, so you need to be ready for the new challenges and seize the market’s opportunities.
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