5 minA bank actively engaged alongside property developers
While the Bank is renowned for its expertise in wealth management, it is also the go-to partner for entrepreneurs and property developers. Through bespoke financing solutions, tailored support and active engagement in the professional dynamics of the property sector, Banque de Luxembourg is dedicated to working proactively with the people who are shaping the Luxembourg of tomorrow. We discuss the Bank's niche positioning with Real Estate Adviser Nathalie Welbes.
This interview was conducted for the Luxembourg Real Estate Chamber – Developers Section.
Can you tell us more about Banque de Luxembourg and its main activities, particularly in relation to real estate?
Banque de Luxembourg is a private Luxembourg bank that supports its clients at every stage of their life, in the management, enhancement and transfer of their wealth. Although historically we are a well-established wealth manager for private clients, we have expanded our expertise to meet the growing needs of businesses and institutional clients. We take a holistic view and adopt a tailor-made approach to support the three client groups we serve:
- Private clients: wealth management, investment solutions, financing solutions and day-to-day banking services aligned to their needs
- Businesses, entrepreneurs, real estate professionals and the liberal professions: personalised support for financing, wealth management and succession planning
- Investment funds and independent asset managers: high-level asset servicing solutions.
Thanks to a team of experts specialising in real estate financing, we support professionals based in the Grand Duchy in the realisation and development of their real estate projects, often over several generations.
What specific solutions do you offer property developers in Luxembourg?
We offer our corporate clients a range of financing solutions (investment loans, overdraft facilities, leasing and bank guarantees), surplus cash management and day-to-day business management. For clients involved in real estate, we offer project financing loans as well as completion guarantees on exiting projects.
Our ability to offer personalised approach and wide-ranging support for our clients, in both the professional and private sphere, sets us apart from other banks. We also support entrepreneur families in growing their businesses and passing them on.
What motivated your decision to become a supporting member of the Luxembourg Real Estate Chamber's newly created section dedicated to developers?
Our local presence facilitates regular dialogue. Having close ties with the market players means we keep abreast of trends and gain a detailed understanding of the challenges facing real estate professionals.
Why is it important for Banque de Luxembourg to provide financial support for the activities of the new property developers section?
We place particular emphasis on dialogue between professionals. The creation of a developers section was a necessity following the recent crisis in the property sector, which is why we decided to participate in this initiative and contribute to it financially.
How do you see the role of the Real Estate Chamber – Developers Section in Luxembourg’s real estate ecosystem?
The creation of this discussion platform will enable developers to share their experiences and find common solutions to stimulate the market. We believe that collective intelligence is a powerful lever of influence, particularly in terms of proposing improvements within the profession, such as the quality charter, and putting forward innovative ideas to the government.
What types of financing do you offer developers during the planning and realisation phases of real estate projects?
We work with our clients – often family businesses – in financing their real estate development projects, but we also provide ad hoc financing for infrastructure works and development costs. We are also involved in long-term real estate investment projects.
Do you offer specific bank guarantees, such as completion or performance guarantees, to safeguard your clients' projects?
Yes indeed, we issue completion guarantees, payment guarantees and performance guarantees.
How do you support your clients in the day-to-day management of the banking operations underpinning their real estate projects?
Our approach is that of a private banker: it is based on close relationships, possible thanks to the fact that we limit the number of clients per adviser. We support our clients with the utmost care and attention, offering them practical everyday solutions. These include a full range of payment solutions, digital banking, the MultiLine platform and business credit cards. In addition to our everyday banking services, we offer investment and cash management solutions.
However, our involvement is not limited to day-to-day management and project financing, but also includes the transfer of their businesses and private projects too. We have developed a series of programmes – with distinct but complementary challenges and objectives – on the subject of business transfers, the emphasis being on peer discussions and personal development.
What do you think are the main concerns of today's property developers in terms of financing?
On the one hand, the profitability of real estate projects is impacted by the time aspect, in large part due to the lengthy procedures for obtaining building permits and the environmental standards that have to be met.
On the other hand, ever-increasing regulatory requirements and rising interest rates are not making it easier to get access to financing.
When analysing a project, all these factors have to be taken into account and discussed with the client.
How is Banque de Luxembourg adapting to the property market's regulatory changes and changing expectations?
We don’t just abide by the regulatory constraints, we proactively integrate them, by keeping regularly informed and communicating information transparently to our clients. This ongoing dialogue helps us find solutions and build long-term relationships. For example, a few weeks ago, we co-organised a conference on Basel IV with a focus on the real estate sector and participation from several members of the Real Estate Chamber.
What are your long-term objectives as a financial partner for property developers in Luxembourg?
Financing developers is one of the main pillars of our ‘Businesses’ activity. A local presence and long-term relationships based on trust, often across several generations, are part of our DNA. This mutual loyalty guides our future.
What message would you like to convey to the developer members of the Real Estate Chamber regarding your engagement and services?
For over 100 years, Banque de Luxembourg has proved its worth as a genuinely trustworthy long-term partner. Our primary responsibility is to protect and enhance the wealth entrusted to us. We believe that trust is the foundation of a lasting relationship with our clients. Our approach to private banking is based on attentive listening and the ability to see the overall picture of any wealth situation. Banque de Luxembourg has grown around our clients’ needs. We do not pursue quick profits or growth at any price, focusing instead on solutions that are reliable and sustainable in an increasingly complex economic and financial environment.
How do you see your collaboration with the Real Estate Chamber – Developers Section evolving in the coming years?
As part of our comprehensive approach and the programmes and workshops we offer, we want to build a lasting partnership by actively contributing through dialogue and funding for financial and banking topics.