The Real Estate Journal published an editorial for Expo Real, discussing credit platforms, especially credX, over several pages. We are doubly pleased about this: firstly, because the added value that credit platforms can offer is now becoming clear. And secondly, because we are now receiving so much attention thanks to our top clients and financing. The article is behind a paywall. We have summarized what we consider most important for you.
The article by IZ Ulrich Schüppler highlights how important it is, especially today, for real estate investors not only to find the right financing partners, but also to manage the process professionally with all the evidence and documents. Digital financing platforms are playing an increasingly important role in this.
Sam Mellor, Head of Real Estate Debt at Barings, distinguishes three types of platforms: crowdfunding, as a niche product, pure “matchmakers”, i.e. databases that only suggest suitable financing partners, and platforms that support the entire process. Such platforms can create considerable added value, especially in the fragmented German banking market.
credX is a platform that not only carries out matchmaking, but also supports the entire financing process. According to Ralf Kauther, CEO of credX, there are approximately 800 to 1,000 lenders active in commercial real estate financing. Banks, especially the cooperative banks, account for the lion’s share. Debt funds and insurance companies are becoming more important, but are currently still very selective. He estimates that 250 addresses cover 80% of the market. With currently around 300 connected investors, he believes that he is well positioned, especially as credX is constantly providing financing addresses for established addresses, receiving concrete financing offers and has already concluded many deals. Almost every new enquiry is also used to connect further investors and record their profile.
Kauther further emphasises how important the digitisation of processes is in order to achieve economies of scale: more technical support means more transactions with the same personnel costs. In this way, credX can handle 10 times more business with the same number of employees than a classic financing intermediary. In this way, credX can also support the highly professional, dedicated financing teams that are now being used by real estate developers and investors.
In addition to credX, Reesca and crex are mentioned in the article as platform providers, as well as Vincent Schneider from the consulting company Vitura. In addition to the platform with “matching engine” and data room, Reesca offers classic financing advice. Crex Capital promises significantly more: they now want to start programming an end-to-end solution that not only digitises the financing process, but also automates it. The solution should be available by the middle of next year. At the end of the article, Sascha Klaus, CEO of Berlin Hyp, comments. His company is also in the process of digitising the financing processes. He does not see the platforms as competition, but as a complement to the banks. In addition to new business, he would like the opportunity to pass on credit business via the platforms.