New Regulations – More Transparency, More Opportunities. Are you ready? We are!
Archon developed a deep expertise on real estate business structures, starting from the successful connection between the French real estate funds (i.e. Organisme de Placement Collectif en Immobilier- OPCI) – highly regulated – and the Luxembourg non-regulated structures.
We track the current significant modifications the real estate sector is experiencing and that are supported by:
- Capital Intensity: high capital-intensive investments to well-established businesses are going to be the leitmotiv. Many financial commitments from non-EU countries are going to be directed to the Eurozone.
- Increased regulations as opportunities – a Darwinian Selection: new regulations are going to dictate the financial conduct on how to do real estate business. Regulators are claiming for major capital adequacy of the banking sector (Basel III and Solvency II) and high risk monitoring for the sector (AIFMD). Such regulations shall have a cleaning function and prevent the formation of speculative bubbles. The big (well-capitalised) players will have the chance to benefit of the best real estate opportunities, whereas the small fishes might be cut out. Leveraging is still possible but for the “selected” players. Those best-in-class will drive the whole confidence in the market.
