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Value Retail's Scott Malkin in conversation with Lloyds Bank's Martin Green
Europe’s CMBS market is currently dominated by the securitisation of large, balance-sheet loans, but pricing achieved in three recent CMBS issues has been disappointing. Perhaps now would be an opportune time for lenders to embrace agency CMBS structures, with respect to the securitisation of such loans. The challenging pricing achieved in relation to Logistics UK 2015 CMBS, Reitaly Finance CMBS and Taurus 2015-3 EU DAC shows the potential perils of CMBS as a distribution tool for CRE debt. These three deals bring into stark focus the pricing quandary that confronts many conduit lenders.
The majority of insurance companies surveyed in a new study from BlackRock plan to increase holdings in one or more income-producing private debt strategies. Eighty-two percent of the insurers, comprised of 248 respondents and representing $6.5 trillion in assets, said that they would increase allocations to at least one alternative credit strategy such as commercial real estate debt.
Demand from overseas investors means high-end London residential property is still a safe bet for investment, says Colin Sanders, CEO of  prime real estate lender Omni Capital London can take it”; four words that carried much weight in the dark days of 1940. Then, of course, they referred to the Luftwaffe’s aerial assault on the […]
As the finance market booms again, quality of documentation can suffer in the rush to close deals. But recent cases highlight the danger of this, say Georgina Squire, head of dispute resolution and James Walton, commercial real estate finance partner at Rosling King
As an IFC, Jersey has an enviable array of fund managers creating and administering funds spanning a wide range of asset classes, including real estate debt. With a large slice of Jersey’s economy dependent on the fund management industry, many Jersey-based professionals have been monitoring the development and implementation of the Alternative Investment Fund Managers Directive (AIFMD) with keen interest.
MaxCap Group (MaxCap), the Australian commercial real estate (CRE) debt investment manager, has appointed Brett Corfield to the newly created role of chief risk officer. Corfield, who will be based in the firm’s Melbourne head office, has 25 years of experience in financial services and real estate in Australia, Asia and the US.
PEI Media Group, owner of Real Estate Capital, has secured financial backing from UK mid-market private equity provider LDC for a management-led buyout of the alternative assets information business. LDC, which is part of Lloyds Banking Group and exclusively invests off the bank’s balance sheet, has made a significant equity investment for a minority stake in the business. PEI’s management team, led by chief executive Tim McLoughlin, also invested in the transaction. Co-founders David Hawkins and Richard O’Donohoe are becoming non-executive directors and will continue to hold a minority interest.
KKR Credit has hired John Davison to lead its recently launched pan-European debt platform, Pillarstone. Davison, formerly global head of strategic investments at Royal Bank of Scotland, joins the platform as chief executive officer. He will also be a co-investor.
As the world continues to get smaller, financial markets more interconnected and capital sources more diverse, the need to understand capital demand drivers when investing in commercial real estate is paramount. Wherever that capital is within the capital stack and whether it is defined as active in debt (via banks, insurers, M-REITs, mezz funds), preferred or common equity, the distinction is in the apportionment of risk and the associated risk-adjusted returns.
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