The global financial crisis has hit the real estate sector hard. Consequently, banks and financial institutions are sitting on billions of dollars of non-performing real estate assets. It's a similar scenario to the Savings & Loan real estate crisis in America of the late 1980s. Only this time the loans are bigger, the crisis deeper, it's worldwide and there is more to come.
On top of that banks must meet new balance sheet rules due to more stringent requirements by regulators. This leaves them between a rock and a hard place with only two options: sell the portfolio at a huge loss or do nothing and substitute hope for reason. And let’s face it: managing distressed real estate assets is not a core banking expertise.
But what if there is a third solution? A new proven model that retains value, provides balance sheet relief and brings back liquidity, while preserving your assets?
With its unique experience gained during the last Saving & Loan crisis of the late eighties the Homburg Real Estate bank developed such a solution. It has been improved by a think tank of renowned financial, legal and real estate professors of the Homburg Academy.