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FINANCIAMIENTOPositive projections and theopportunity to get in otherreal estate sectors will allowa growth of the enterprise andcustomers.With 29 years of experience at GE, andsince 2006 within the Real Estatesector, Miguel Torres, General Manager– Mexico of GE Capital Real Estate, seeswith optimism the long termed future in thecountry, even without considering the StructuralReforms, which in case of being adequatelyimplemented will give very good results.“We can see some stable Government finance,low debt and high reserve, as well asa neighbor country that starts to grow with asolid economy and Mexico, that thanks to theReforms has got the potential to increase theinternal consumption and that is a kind of positivething. The commercial sector of the RealEstate in Mexico is still small, there is a necessityof building more square meters in themid-term and that organic growth is very positive”,says Torres, who was also the GeneralManager-Spain for more than five years.In other countries, the business comesinto two ways, by the direct relationship withthe customers or through the intermediaries;concerning Mexico, the business origination is100% direct since the intermediary market isdeveloped just a little. In Mexico, GE CapitalReal Estate has 20 year developing relationshipswith customers, and that trust generatedbetween GE Capital Real Estate and thecustomers has been essential for the business’growth.Miguel Torres, with a year working in Mexico,explains that “20 years ago, we startedworking on Debt, then on Debt and Equity, butsince the economic crisis in the world, the companymade the strategic decision of remainingjust on Debt. In the case of Mexico, we havealready fulfilled the cycle and nowadays, weare just focused on growing with Debt with theclear goal of continuing growing in the office,industrial, retail and hotel sectors. We want tocontinue increasing our exposition with all themand related to hotel, we want to strengthen ourimpact because we are proportionally less exposedand we want to redouble our presence inhotel businesses and getting in the beach vacationsegment”.Miguel also had the position of BusinessDevelopment Vice President at NBC Universalin the origination and closing of the investmentopportunities in the Spanish American andMexican market; in addition, he was Vice Presidentof GE Structured Finance Group where wasin charge of Debt and Capital financing of privateinvestment in the energy, telecommunicationsand infrastructure sectors in the UnitedStates, Latin America, Europe and Asia.Currently, GE Capital Real Estate Mexicois focused on granting financing to stabilizedassets, it means, to those real estate that generatea rent. Before, the enterprise was alsofocused on the construction and they are evaluatinghow to approach it more in order to supporttheir customers. Their customers can alsobe categorized into two groups:1. Those who buy stabilized assets and“In 2012, when we lent money atbig scale again, we closed with800 millions; in 2014 with 1,200million dollars”seek financing and, according to Miguel Torres,the company has got all the products to supportthem in their growth; and 2. Those who havesold have also liquidity and want to developagain. GE Capital wants to offer them moresupport by offering for example, the possibilityof financing assets in construction crossedwith stabilized assets, construction take-outfinancing and also by offering lines of forwardfinancing.“In 2012, when we lent money at big scaleagain, we closed with 800 million dollars offinancing, for 2013 we closed with 1,200 millionsof financing and in 2014 it is also close to1,200 million dollars. The important thing hereis although the total amount of 2013 and 2014is stable, what is changed is that in 2013, twothird fractions were financing and the rest ofthe money was new (400 million dollars) whilein 2014, 90% of the money is new (1,000 milliondollars).This money increase shows with facts thetrust of GE Capital Real Estate for the commercialreal estate market”, emphasizes MiguelTorres. Concerning the different sectors, heobserves that a growth continues in the officesegment, overall in the cities par excellence:Mexico City, Guadalajara and Monterrey; asregards to the industrial one, there is not justopportunity on the border, but also in DistritoFederal, Guadalajara, Monterrey and Bajio, thatgrow in a good way.“If today you speak with businessmen, youcan notice that the trust of investing on theborder has come back. In retail it is generic becauseit is developed all over the country, and ifyou see the penetration of retail per dollar andsquare meter in the country, there are lots ofreasons to think that as the middle class growsand the financing to a person rises, it will causethe retail growth in Mexico”, he explains.For the new customers, Miguel Torresstrengthen that GE Capital Real Estate Mexicocounts on more than 20 years of experience inthe real sector in Mexico and they are committedwith the country, and they also have got thenecessary expertise with qualified staff andalmost 50 people exclusively dedicated to offerservices of financing, and in addition, they alsoknow the market very well. “We finance realestate properties and, we preferably work withthose customer that as us, bet on the futureof Mexico and search to generate a recurrentbusiness and not necessarily just a transaction”,he complemented.•82www.inmobiliare.com