Eugenia Jimenez
The UK debt fund manager has provided construction finance for Slovakian developer JTRE’s Triptych scheme at a time of scarcer construction finance due to the covid-19 pandemic.
The real estate arm of the German insurer recently secured its first third-party fund investor for its vehicle focusing on the strategy.
Although the property sector has created new challenges for banks during the current crisis, these institutions were already contending with larger pressures beforehand.
But ‘future-proofed’ schemes should see increased demand, according to the latest CBRE research.
Growing pressure on Europe’s banks due to the pandemic could hinder their ability to continue lending into commercial real estate at pre-virus levels.
The specialist UK lender is aiming to provide more than £250m in situations where other lenders are struggling to maintain liquidity.
UK real estate finance specialists, speaking on a recent webinar, expect request for covenant waivers and interest payment holidays to increase in June and July.
Losses and write-offs on retail debt could reach £10bn, while £22bn of development loans face delays, the latest UK lending market report by Cass Business School predicts.
The £180m loan for a new luxury London hotel is one of the few financing deals closed in the sector since the pandemic began.
Legal issues finance parties could face during the coronavirus pandemic will most likely be linked to traditional financial covenants, argues one real estate finance lawyer.