JPMorgan takes a broad approach to real estate equity financing
JPMorgan’s innovative approach to real estate has put it at the top of the Liquid Real Estate poll’s equity category. Laurence Neville finds out why the firm has become a force to be reckoned with.
"Investors who buy real estate stocks want to talk to people who speak the language of real estate"
JPMorgan’s real estate equity financing operations have been at the forefront of the broadening of real estate’s involvement in the equity markets. Some of the European initial public offerings it has led are credited with initiating generalist investor interest in the asset class and a recent wave of real estate convertibles from European issuers brought to market by the bank has heralded a resurgence in their use, following years of being off-limits as a financing tool. "One of the distinguishing elements of JPMorgan’s real estate equity activities is the breadth of activity," says Klaus Hessberger, co-head of Europe, Middle East and Africa equity capital markets origination. "The bank has been involved in many of the landmark IPOs in the sector and has also participated in capital increases. But the ability to consider other financing options – such as equity-linked – which many other banks considered impracticable for property companies, is a differentiator for us."