Manage your commercial real estate financing operations

Track the LTV of your financed commercial real estate assets, their GHG emissions and their EPDs over time, to meet the challenges of your scope 3 assessment and your net-zero trajectory.

Context

As part of the objectives defined in the Paris agreements, all players were asked to focus on a low-carbon transition to reduce GHG (greenhouse gas) emissions.

As part of this, everyone was asked to define a strategy in which the ultimate goal would be to reduce GHG emissions as close to zero as possible. This is known as the “Net Zero Carbon” objective.

As key players in the energy transition, banks naturally need to monitor and control indicators linked to their financing of GHG-emitting projects.

For the commercial real estate sector, better knowledge of the impact of their portfolios and the ability to initiate and manage decarbonization are among the greatest challenges facing these players.

These new objectives will add new elements to be monitored and managed for all new financing projects, as well as for existing stock.

It is therefore inevitable to adapt processes and tools to meet these challenges.

What to expect from this feature?

By using Kls to monitor your real estate financing portfolio, you will be able to :

Easily manage your financing portfolios and guide your customers in achieving their carbon objectives in line with the taxonomy.
For each financing operation, track your assets in detail (e.g. Destination and LTV, carbon impact of financing and asset, etc.)
Automate reminders to your customer of these new covenants
Enable your customer to send you the expected documents (DPE, etc.), immediately, securely and without technical constraints (size, number, etc.).
Facilitate the creation of your internal or external reports, thanks to the data export module.

Creating a real estate asset tracking file in Kls

The path is similar to that of a Corporate Finance tracking file in the Kls Desk. When creating a new transaction, you will have the choice of creating a transaction with the “Corporate Financing” path or the “Commercial Real Estate” path.

The difference in paths will make it possible to segment Real Estate operations by one tag and Corporate Finance operations by another, to facilitate filtering and data reprocessing after export.

In this new creation path, you'll find the same screens as in the classic tracking path, enhanced by new fields specific to the needs of commercial real estate financing.

These specific features are described in the following steps:

1. Operation summary

Immediately after creating your operation, you'll come to the “Operation details” tab.
To begin completing your real estate financing, you will be asked to modify the “Operation summary” insert to enter the contract dates and financing details.

[DT] Parcours real estate - résumé opération

In the new course, you'll find :

Operation nature: choose whether the transaction is real estate or corporate financing.

NB: You can change the nature of the transaction even after it has been created, notably to transfer its “untagged” real estate financing stock to the new path, or simply to correct an error.

Real estate account manager: to enable you to differentiate between your account manager and the Agency account manager if necessary.
Customer category: provides access to a drop-down list to segment customers.
Financing specificity: already available on the classic path, but now enhanced with new options to meet the needs of real estate financing.

2. Client information

New types of customer data can be centralized in the commercial real estate transaction workflow.

Two new tabs will be available: Taxonomy and Patrimony.

[DT] Parcours real estate - onglet immo dun client

Taxonomy tab: It is now possible to fill in and save, for each customer, information relating to Scopes 1, 2 and 3, as well as taxonomy alignment percentages.
Patrimony tab: Allows you to record the value and surface area of each customer's assets.

3. Adding an asset

In addition to the additional elements added to meet the tracking needs of a commercial real estate operation on the Kls Desk, you'll find a new block of information, specific to this type of operation: the Asset.

In your operation details tab, once you have completed the customer and financing tranche information, you will be invited to add the asset(s) linked to your financing operation.

[DT] Parcours real estate - Onglet de lactif immobilier (EN)

For each asset created, you will find information on:

Asset detail:

Surface area, construction, address, cadastre, but also its destination and rental income.

Asset financing:

With the amounts allocated, the tranches concerned, changes in LTV (Loan to Value) and the dates of the asset valuation appraisals.

You also have a ‘Client(s) attached to the asset’ insert, which enables you to attach the borrower(s) to the correct asset(s) on your transaction:

This action is necessary in order to export your data correctly in the export module. See the article on data export ***

The asset's carbon impact:

Tab showing the amount of emissions financed, environmental certifications, carbon intensities and the history of all ECDs and their validities.

Conclusion

Thanks to the wide range of use cases that can be executed in the Kls Desk (credit pool, bilateral, ESG monitoring, monitoring of participation in a syndicated loan, and now commercial property monitoring), you can equip your teams with a tool that will facilitate their daily work by automating time-consuming tasks, facilitating the centralization and export of essential information, and making the challenges of traceability and risk reduction painless.

All this information gathered in the Kls Desk will enable you to save precious time in managing your portfolio, particularly real estate, and demonstrate your ability to easily provide information to prove your commitment to the challenges of the Trajectoire Net Zéro strategy.