As a highly specialized niche service provider, HYPO NOE GROUP is handling selective real estate financing projects in the Central and Eastern European region from Vienna and their offices in Prague and Budapest. In 2010, HYPO NOE GROUP will also open a new office in Frankfurt, Germany’s main banking locale. Business Location Austria spoke with Peter Wendlinger, Head of Real Estate Finance and Executive Director for HYPO NOE GROUP.
In light of the economic crisis, have HYPO NOE GROUP’s working conditions changed in the past year?
Generally, nothing has changed for HYPO NOE GROUP. Vienna is still an important hub for real estate dealings in Central and Eastern Europe. The CEE region remains one of the most significant markets for Austria, even though it currently shows economic tension. I do not share the gloomy prognoses some analysts have made regarding Central and Eastern Europe. However, one needs to focus on certain markets in order to ensure continued economic success. Therefore, HYPO NOE GROUP is investing predominantly in the Czech Republic, Hungary, Slovakia and Poland. Poland is particularly important to us, because the crisis has so far only had minor effects in this country, and has not caused a negative prevailing mood, unlike in other countries.
How important are the core markets of Vienna and Lower Austria for HYPO NOE GROUP?
Especially in economically turbulent times, the Viennese market has proven to be quite stable. The steady development of real estate and rent prices in Vienna has contributed to the fact that Austria’s real estate industry for the most part has so far made it through the crisis unharmed.
Has the crisis brought changes to HYPO NOE GROUP’s decision making process?
Our approach has not changed. We are still a small provincial bank that proceeds very conservatively. We are rushing nothing, and every decision is made with attention to detail. We have adapted our growth perspective to our resources and are choosing our projects very carefully. We are, however, very active at an international level. In 2009 for example, we financed a shopping centre in Zagreb and a portfolio of apartment buildings in Berlin. In Vienna, we are involved as financiers for office properties in a central location.
In times of crisis, many real estate investors are banking on housing projects. Are you also involved in residential building?
We are only very selectively active in the housing sector. Residential building activities are for the most part with our retail bank. HYP NOE GROUP finances housing projects for commercial clients exclusively. In this area, we are mainly active in the retirement provisions market.
Are you as a bank going to actively enter the real estate business yourself?
We will stick to our core business area of real estate financing. In individual cases, property acquisition might be a topic for the group, but generally, HYPO NOE GROUP is not a real estate investment company.
Why did you decide to become active in the German real estate market as of 2010, with your own office in Frankfurt?
The market in Frankfurt is particularly interesting due to its size, stable development and low risk potential. In 2010, many financing projects that were established as securitizations in the capital market between 2004 and 2006 will need to be refinanced. This will give us many attractive business opportunities. |
