Agefi Luxembourg - avril 2025

AGEFI Luxembourg 30 Avril 2025 Immobilier Could you introduce Adelaer? What are your main missions and areas of expertise? Adelaer specializes in tailored financ- ing solutions, including complex trans- actions, but not exclusively. With an international team and offices in eight countries, we operate as a premium debt advisory and brokerage firm, structuring and negotiating financing agreements with a wide range of lenders: banks, insurers, pension funds, debt and private equity funds, and other commercial real estate (CRE) financing institutions, both in domestic and international markets. What sets us apart is our proprietary fi- nancing platform, designed to connect real estate professionals with the most suitable financing providers. On this platform, we bring together lenders and borrowers, streamlining access to capital. The types of financing we ar- range include senior debt, mezzanine or junior loans, construction financing, bonds, and equity partnerships. Our clients—real estate profession- als—benefit from best-in-class financ- ing solutions, arranged independently and tailored to their needs, at precisely the right time. Adelaer operates across three core business lines: 1. FinancialArchitects (our main activ- ity, described above), 2. Investment Management , and 3. Loan Management . In Investment Management , we assist in the acquisition and sale of real estate portfolios on behalf of both clients and capital providers. Our extensive net- work of more than 2,000 financiers, in- vestors, developers, and institutional players plays a vital role in facilitating these transactions. In LoanManagement , we act as an in- dependent party managing loans after the deal is closed, ensuring continuity and transparency throughout the life of the financing. Howdoes your group concretely help real estate professionals in their search for property financing? As an independent debt advisor, Ade- laer works with complete trans- parency to guide clients on both the financing strategy and structure best suited to their needs. We specialize in translating those needs into clearly ar- ticulated proposals—essential when matching projects with the right fund- ing partners. We also serve as a buffer between the borrower and financing providers, which helps maintain strong, long- term relationships with all lenders in- volved. Beyond traditional banks, we offer access to a far broader network of capital sources and have the expertise to identify the most appropriate part- ner for each specific transaction—even when that partner is outside of the mainstream. As a central point of contact for multi- ple financiers, we simplify the process and alleviate the burden on our clients. Our role is to bridge the gap between supply and demand in the commercial real estate finance market. Because we are compensated directly by our clients—and not by the lenders—we are able to remain truly independent and committed to delivering the best solution for them. How is mortgage and real estate credit advisory evolving in Luxem- bourg? In the mortgage market, Luxembourg has recently seen the emergence of new players taking on a more promi- nent role in brokering loans between banks and borrowers. However, the commercial real estate (CRE) finance sector is still in its early stages. In more mature markets such as the UK and the US, real estate profession- als naturally turn to debt advisors and brokers for support with financ- ing. In Luxembourg, this practice is just beginning to take root, and Ade- laer is proud to be among the pio- neers leading the way. As the regulatory landscape evolves— particularly with the introduction of Basel IV—debt advisors are becoming essential partners. We help clients nav- igate complex compliance require- ments while optimizing their capital structures. At a time when traditional lenders are under increasing regula- tory pressure, debt brokers like Ade- laer open the door to alternative sources of financing. With the implementation of recent regulations, financial institutions are facing stricter capital requirements and more rigorous risk management protocols. What is the impact for real estate professionals? These new regulations, born out of the 2008 financial crisis, aim to strengthen global financial stability. However, that stability comes at a cost. Under Basel III and now Basel IV, the tightening of capital and leverage requirements has made speculative real estate finance less attractive. Banks now prefer lower-risk, high- value real estate projects. Mid-market developments, which often require more complex and customized financ- ing, are likely to encounter greater dif- ficulty securing funding. This explains why project financing is now a major concern for real estate de- velopers. All feedback from the bank- ing sector points to a common theme: Basel IV will significantly impact how banks approach lending in the coming months. The new framework goes fur- ther than Basel III by increasing capital requirements, restricting internal risk models, andmandating stricter liquid- ity and reporting obligations. It also in- troduces a standardized floor for risk-weighted assets (RWA), which could substantially affect bank pricing and lending volumes in the sector. As PWC outlined in an Agefi article in October 2024, one notable change is the creation of a new exposure class— ADC (Acquisition, Development, and Construction) —which has been carved out of the previous “high-risk” category. This specifically applies to developments without pre-commer- cialization. ADC loans can carry either a full 150% risk-weight or, under cer- tain conditions, a preferential 100% treatment. To carry 150% of the loan amount as economic capital in a RE fi- nancing transaction will certainly lead to a price increase and/or a decrease in the leverage. As a result, lenders will increasingly focus on income-generating, low-risk assets while retreating from specula- tive projects or those with high loan-to- value (LTV) ratios. Though it’s still difficult tomeasure the full impact, the effect on real estate developers will un- doubtedly be significant. Adding to this is the current treat- ment of Non-Performing Loans (NPLs) , which is causing some Lux- embourg financial institutions to drastically slow or even completely halt new development financing. This contraction in supply will further challenge the market. Finally, with banks raising interest margins to offset the cost of additional capital requirements, developers may find themselves forced to reinvent their financial and operational models. In your opinion, howwill the real es- tate financing sector evolve over the next few years? The key question is: how will real es- tate professionals adapt to the shifting landscape of real estate financing in the years ahead? We are already seeing a decline in the share of traditional bank debt in real estate projects, while developer eq- uity—never unlimited—is being stretched. This could likely lead to a shift toward alternative models, in- cluding: - The “Investor-Developer” Hybrid Model : Developers form long-term partnerships with investors or devel- opment funds, often without pre- sales, focusing on equity-backed models, longer holding periods, and commercialization after project com- pletion. - The “Service Provider” Model : De- velopers evolve into specialized ser- vice providers, working on behalf of third-party investors, thus reducing capital requirements and financial exposure. These models reflect a broader trans- formation in the way development projects are financed and structured. Adelaer Luxembourg recently ar- ranged €25 million in financing for the pan-European fund Lifento Care. How did this transaction take place? At Expo Real, a law firm based in Luxembourg introduced me to the CEO of Lifento Care Pan-European— a fund specializing in healthcare real estate across Europe. We had a con- versation about our respective activ- ities, and the topic of financing naturally came up. The fund, head- quartered in Luxembourg, was look- ing to refinance healthcare assets in Germany. The transaction appeared straightfor- ward at first: a reputable sponsor with a strong track record, conserva- tive loan-to-value (LTV), long lease agreements (WALB over 10 years) with high-quality operators, and a property class that generally appeals to investors. Our first step was to carefully define the client’s expectations and financing objectives. We then prepared a com- prehensive debt teaser , including a detailed description of the sponsor, the assets, the transaction and a cash flowmodel built in-house. This model highlighted key financial metrics and risk indicators relevant to lenders. We began a market sounding process and subsequently sent the teaser to carefully selected financing partners. However, what seemed simple at the outset became more complex due to hesitations among some German banks around financing healthcare assets. That is why we exist, and we suc- ceeded in securing the best senior loan under highly favourable condi- tions—both in terms of pricing and loan structure. Do you have other projects in Lux- embourg? Adelaer Luxembourg originated a bond issuance in Poland, transaction was closed last week. I am based in Luxembourg but I assist my clients all across Europe. We are in the closing process of 2 senior loans for assets lo- cated in Luxembourg, closing is ex- pected in May. And others will come, this is just the beginning. Interview with Raphaël XIOL, Managing Director, Adelaer Financial Architects Luxembourg How real estate professionals are adapting to the changing landscape of real estate financing L a Chambre de Commerce a organisé, pour la 18 e année consécutive, le pa- villon national sur le salon du MIPIM, à Cannes, du 11 au 14 mars 2025. Malgré le contexte incertain, 21.200 participants se sont retrouvés autour des 2.300 entreprises exposantes, renfor- çant le rôle fondamental de cet évènement pour l’écosystème immobilier mondial. Cette année, leMIPIMa décidé de pro- poser un programme détaillé afin de permettre aux participants d’explorer le rôle de l’IA dans l’immobilier numé- rique, les stratégies d’investissement et l’efficacité opérationnelle. Le Luxembourg y était représenté avec pasmoins de 350participants et 34 entre- prises exposantes, dont 13 sur le pavillon national:Agora,BanquedeLuxembourg, Banque Internationale à Luxembourg, Dagli + Atelier d'Architecture, Drees & Sommer, DSMAvocats à la Cour, Fonds d'Urbanisation et d'Aménagement du Plateau Kirchberg, ICN Investment Management,INGLuxembourg,La Ville de Luxembourg, l'Ordre des Architectes & Ingénieurs-Conseils, SEDLO Law Firm, Necron Capital SCSp SiCAV RAIF. Temps fort de la participation luxem- bourgeoise auMIPIM, la traditionnelle réception officielle organisée sur le Pavillon National le 12 mars 2025, a rassemblé cette année plus de 150 représentants du secteur immobilier. L’occasion pour Fernand Ernster, pré- sident de la Chambre de Commerce, et Lydie Polfer, bourgmestre de la Ville de Luxembourg, de rappeler la forte résilience de l’économie luxembour- geoise et de ses acteurs au sein d’une nation dynamique, durable et inno- vante, représentant un terreau fertile au développement de projets immobiliers. En marge du MIPIM, de nombreux évènements de networking étaient organisés afin de favoriser les échanges dans un cadre plus convivial, notam- ment le 12 mars au soir, sponsorisé par plusieurs partenaires dont la Chambre de Commerce. Source : Chambre de Commerce Les acteurs de l'immobilier réunis au MIPIM 2025, dans un contexte de reprise économique incertain ©CC ©Photo :BarbaraBrixhe