Merle Crichton
Natixis Pfandbrief provided a €129.5 million loan to finance Henderson Park's purchase of the office and retail complex in central Berlin
The duo will target both the acquisition and origination of loans secured by real estate in the western US, Ireland and the UK.
Equity is committed and ready to invest in prime European property, but a lack of clarity on debt terms is an issue for investors.
The long-term refinancing facility for the Connaught and the Berkeley, two of London’s most luxurious hotels, was arranged by US bank Citi.
After a lofty point in the investment cycle saw the definition of prime real estate become flexible, investors are now unwilling to tolerate extra risk without additional rewards.
The pandemic will make it difficult to invest capital during the first half of the year but declines in asset pricing are expected to help deal volumes rebound in H2 2020.
Sentiment among Germany’s real estate lenders has plummeted, although those closing transactions are reported to have raised loan margins.
Borrowers with financially engineered performances face covenant breaches amid a market correction, warns AXA IM – Real Assets’ head of research and strategy.
A measure to allow some borrowers to request forbearance from special servicers could hinder new loan originations, said a Real Capital Analytics executive.
Rating agency S&P Global is monitoring sponsors’ performance, but believes transactions are equipped to deal with liquidity stress.