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September 26th, 2023 | 07:20 CEST

Dry spell despite the Housing Summit? New safe havens ahead! Aroundtown, Vonovia, Globex Mining

  • Mining
  • Gold
  • RealEstate
Photo credits: pixabay.com

Shares in real estate companies are once again on the rise. The reason: the interest rate break is here, and with it, the hope of falling capital costs. At the same time, industry representatives and the German government are struggling to find solutions at the Housing Summit. We shed light on the current situation in the real estate market, explain why politicians' promises are of little use and highlight alternatives in an industry that is currently in vogue for several reasons.

time to read: 3 minutes | Author: Nico Popp
ISIN: VONOVIA SE NA O.N. | DE000A1ML7J1 , AROUNDTOWN EO-_01 | LU1673108939 , GLOBEX MINING ENTPRS INC. | CA3799005093

Table of contents:


    Nick Luksha, President, Prospect Ridge Resources
    "[...] As we look at four or more zones in more detail from the beginning, investors can expect a continuous news flow that will underscore our vision of the Holy Grail project as a giant opportunity. [...]" Nick Luksha, President, Prospect Ridge Resources

    Full interview

     

    Aroundtown: Professional investor gets involved, but...

    More support for families, less bureaucracy. The results of the Housing Summit were foreseeable. Launched without significant representation from the real estate industry, the Housing Summit promised little more than warm words from the start. But for the market to get going again, it needs to be able to plan. In Germany, many owners and landlords still don't know which investments are necessary for climate protection and which are not. Even among experts, opinions are divided: Some craftsmen want to almost completely renovate houses to make them suitable for heat pumps, while others only want to replace radiators here and there and trust in the increasingly efficient technology. Professional investors, on the other hand, are ahead of the curve. In recent weeks, there has been a growing number of real estate deals by issuing houses and other investors. At Aroundtown, Austrian investor Georg Stumpf's 10.04% stake made a big impact. But is this really the turning point in the real estate market?

    In its Monday edition, Handelsblatt points out that the averaged price targets of analysts for several real estate companies are below the current prices. Andreas Mattner, President of the real estate association ZIA, still sees a "toxic mix" in the market. Above all, high construction costs have brought the new residential real estate business to a virtual standstill. Industry representatives now fear there will be a loss of workers in construction - workers who are urgently needed both for new construction projects and the systematic renovation of existing buildings. Especially foreign workers may move from Germany to Italy or Spain, leading to a shortage of workers.

    Real estate sector: Will important capacities break away forever?

    Since economists and central bank experts do not expect interest rates to be lowered quickly, the labor shortage in the construction sector could become a problem at a time when interest rates could actually provide a tailwind again. The uncertain situation in the real estate market is likely to persist for a while. Although shares of real estate companies have come under pressure in recent months, the mood could soon brighten again. Although large real estate portfolios remain a black box given the pressure to refurbish, the shortage of housing space should support rents in the long term. Shares of Vonovia and Aroundtown are still trading within long-term downtrends - so investors need not rush into anything when it comes to real estate shares.

    Globex Mining: Are commodities being rediscovered as an asset class?

    While the real estate asset class is still characterized by uncertainty, investors might get the idea to diversify themselves and their portfolio through commodities. The stock of commodities conglomerate Globex Mining could be particularly well suited for this purpose. Globex Mining bundles over 200 commodity projects in various stages. All projects are located in North America. Globex is thus likely to benefit from the comparatively new trend of nearshoring - more and more companies are striving to organize supply chains regionally, relying on secure jurisdictions. Specifically, Globex Mining provides access to copper, nickel, lead, gold, silver, platinum, palladium, manganese, titanium, iron, molybdenum, lithium, cobalt and rare earths.

    In recent weeks and months, the Company has repeatedly succeeded in ceding projects to other resource companies. These partners invest in the project, and Globex typically receives royalties, payments for certain milestones or a revenue share in case of later production. In addition, there is a constant newsflow due to the numerous activities of Globex's partners. In September alone, partners TomaGold, Radisson Mining Resources, Emperor Metals and Brunswick Exploration provided new developments on projects. With a market capitalization of only CAD 43 million, Globex Mining's stock could be promising due to the variety of different resource projects.


    While many industrial companies and real estate companies are suffering from the major challenges of the time and uncertainty is high in many industries, Globex Mining scores with more than 200 commodity projects and a lot of properties around currently sought-after elements, such as lithium, copper or rare earths. Globex Mining remains speculative due to the early stages of many projects, but there are no comparable companies worldwide that promise access to such a high number of projects in North America. With the share price running sideways for months, investors can take their time to consider the Company.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



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