Merle Crichton
For multiple reasons, Europe’s biggest property market has been an outlier in the region during the course of the pandemic.
€650 million was raised for the project by an investor pool including Icawood and BNP Paribas
An expected increase in acquisitions gives lenders hope that financing mandates will follow
Before this cycle, there was little need for borrowers in European real estate markets to turn to intermediaries for advice. Now, debt advisors’ expertise is valued by many in the sector.
Financings like the £60m, five-year revolving credit facility for Supermarket Income REIT should become more regular in the UK grocery retail sector as demand mounts.
While debt providers are right to be highly cautious of the troubled sector, there are compelling financing deals to be found amid the gloom.
Nordics lender Nordea offered competitively priced debt, but was picked to finance the Trinity Quarter development, in part to strengthen the US manager’s lending ties in the region.
Western and southern Europe are on the menu in the first instance for the UK insurer, followed by the Nordics, newly-appointed head of real estate James Spencer-Jones tells REC.
Investor interest remains strong after corporate real estate disposals reached record levels in Europe and Asia last year.
Nick Sanderson says the UK landlord obtained an interest cover ratio waiver on its sole secured loan to ensure 'flexibility' amid reduced retail rents.