René Gehamy, Head of Credit Advisory at CMB Monaco, talks about his department's mission and the financing solutions offered by the bank for large-scale real estate projects such as Mareterra.
Can you tell us about your career and your role at CMB Monaco?
I started my career in a major Monaco bank, where I was able to explore various departments, which gave me a comprehensive view of banking activities. In September 2019, I joined CMB Monaco to take charge of a key project: the creation of the Credit Advisory department, a structure dedicated to the financing needs of our private clients. Today, my team supports wealth managers in structuring, negotiating and implementing bespoke financing tailored to the varied needs of their clients.
CMB offers a wide range of property finance solutions ...
We offer two main categories of loans.
Firstly, mortgages, which are used to finance high-end residential properties, such as flats and villas located in premium areas. Indeed, in terms of location, we finance prestige properties in the Principality, but also on the Côte d'Azur, from Saint-Tropez to Cap-Martin; in the French Alps, for residences in renowned ski resorts; and finally, in Paris in a limited number of upmarket arrondissements.
Alternatively, we also offer Lombard loans, loans secured against a portfolio of financial assets, which allow customers to retain their invested assets while meeting their liquidity needs. Banks usually require the portfolio taken as collateral to be diversified, but CMB is also able to support clients with strategic positions in listed companies by taking as collateral a portfolio of assets concentrated on just one or two lines.
The scale of the Mareterra project in Monaco was striking. How did CMB position itself for this project?
Mareterra is an exceptional project that required a tailor-made approach. It's important to understand that financing a project that is still under construction poses special challenges.
That's why CMB was one of the first banks in the market to be able to offer a mortgage financing solution for the properties acquired at Mareterra.
Through this financing offer, CMB's customers were able to secure a commitment from the bank to meet the various calls for funds as the project progressed, right up to the handover of the keys. In other words, the bank's commitment well in advance of the property's delivery means that customers can allocate their capital to other activities and investments while waiting for the property to be delivered.
This differentiating offer has enabled CMB to position itself as a key player capable of meeting the needs of an ultra-high net worth clientele who are often looking for alternative solutions to the traditional Lombard loan.
Did the customers who invested in Mareterra have different expectations or profiles from the usual buyers?
Yes, they did. Mareterra stands out for its unusual properties: very large flats and villas, with exceptional purchase prices. The customers who come to Mareterra for such properties often belong to a category that we could describe as ‘Ultra-Ultra-High Net Worth’. These are investors with very substantial financial capacity. Their motivation is twofold: some are looking for a unique residence for their family, while others want to diversify their assets with a rare and unusual asset.
This project has also been an attractive tool for Monaco. Even non-resident investors have shown interest, attracted by the image of excellence and prestige it reflects.
Are property projects part of an overall wealth management strategy?
Property often plays a central role in wealth management. For some clients, Mareterra represented a unique opportunity to acquire an exceptional property in Monaco, while others saw the project as a way of diversifying their portfolio with a tangible asset of great value.
The Monegasque market is a special one: demand for prestige properties often exceeds supply, leading to a steady rise in property values. Mareterra is an excellent example of this: the first buyers, who came forward in the early stages of the project, have seen their investment appreciate significantly over the years, confirming the strategic nature of these acquisitions.
How would you describe Mareterra's overall impact on Monaco?
Mareterra is a showcase for the Principality. The project has made Monaco even more attractive to an international clientele looking for excellence. The quality of the properties, combined with their unique location, makes it a flagship project that has attracted new investors. It has also been a success in terms of image: the handover was a major event, hailed by all. Mareterra not only puts the spotlight on the property market, but also on Monaco as a prestigious destination.
Photo credit: Mareterra
