The foundation of its successful franchise, says Marcus Giancaterino, global head of real estate finance, is the combination of global reach and local execution capabilities. “These twin abilities are critical in today’s markets,” he says.
A recent situation in which Citi undertook multiple deals in multiple jurisdictions for the same client is a key example of how crucial the ability to deliver that model is. The deals totalled $8bn in four financings, in four currencies: one each in Tokyo (yen), India (dollars), London (sterling) and Australia (Australian dollars). “The customer was able to deal with one franchise, and yet able to execute in four different regions through four different transactions,” says Mr Giancaterino.
“Each transaction was unique. One was largely CMBS [commercial mortgage-backed securities], one was a syndicated loan in the international market, two were local syndications. You cannot afford to have any holes in your platform or you will not be able to do the deals that clients need,” he says.
Current market conditions are having an impact on market activity, but Mr Giancaterino says that transactions are being done and that there is appetite for attractive deals. “We have de-emphasised on new US business, as to be expected, but we have just syndicated an Australian deal and it was vastly oversubscribed. It’s about the right sort of deal for the current environment. This was not a securitisation so it appealed to investors.”
Equally, for any firm with capital, there will soon be plenty of opportunities to get hold of good assets. “Those with capital are waiting for the market to offer all the product that is currently sitting on people’s balance sheets,” says Mr Giancaterino. “Then buyers will move selectively. There will be a lot of good product available.”
