Having been Head of Real Estate Finance at UniCredit Bank for 12 years, can you share how your career journey led to this position?

My career began two decades ago in the risk division, where I successfully handled various tasks. Gaining extensive experience, I transitioned to heading real estate finance. This role demands sales skills and risk assessment to analyze projects comprehensively, crucial when extending credit to developers. The economic crisis in August 2009 altered the financial landscape significantly, emphasizing negotiation and problem-solving. Similar scenarios emerged during the pandemic.

How does the real estate sector fit into UniCredit Bank’s overall portfolio?

Real estate has been a pivotal sector for UniCredit since its inception in 2005. We’ve been a prominent financing partner for local and international developers, continuously growing this portfolio as the market evolves.

Reflecting on the impacts of the 2020 pandemic and the 2009 financial crisis, how did these events affect the real estate market and your activities?

Unlike the predictable financial crisis of 2009, the pandemic introduced an unprecedented economic context, significantly impacting the real estate sector. In 2020, we aimed to assist clients by adhering to Government Emergency Ordinance measures, analyzing demands for grace periods on interest, banking fees, etc. Thankfully, our healthy portfolio prevented situations where clients couldn’t meet loan obligations. Some even thrived, utilizing extra capital to make advance payments.

Different real estate sectors experienced varied impacts. How did these trends influence banks’ willingness to finance the industry, including UniCredit’s stance?

While some banks became more cautious, larger financing opportunities remained accessible. We are inclined to collaborate with developers who adapt to the changing context and plan projects accordingly. Medium to large transactions dominate our portfolio, necessitating partnerships with experienced clients possessing a strong reputation and creditworthiness. Existing relationships within the UniCredit Group and developer/investor presence in the local market are also advantageous.

Assessing common risks when financing real estate projects, what are some notable challenges you’ve encountered?

Risks differ based on project development stages. Early-stage risks include budget overruns or delays. Developers must cover costs and assist the project in addressing these risks. We scrutinize the experience of involved construction companies and employ third-party observers to analyze project details. Completed projects pose challenges in generating future income, while new ventures undergo meticulous trend analysis to ensure cash flow sufficiency.

Considering the future of the Romanian real estate market, what are your key ambitions in the next few years?

Our plan involves substantial expansion of our real estate financing portfolio, catering to international developers, local companies, and smaller entities. We aim to diversify risks across multiple projects while maintaining high client quality and regulatory compliance. Cross-selling opportunities are crucial; for instance, financing a residential project and offering associated retail mortgages.

Do you have a final message regarding the Romanian real estate market?

We urge investors to trust in the Romanian market and engage with us for financing discussions. With extensive experience in property transactions and a dedicated real estate consultation team, we’re prepared to support their business endeavors.