UK offices and retail are sectors of most concern as interest coverage ratios plummet.
Private real estate managers are being cautioned to garner a greater understanding of the vitality of their tenants to avoid triggering income clauses in their borrowing terms.
The firm, which has hired two executives from Cheyne Capital to lead the business, sees opportunities arising from ‘a wall of refinancing’.
Lisette van Doorn says urgent action is needed to save assets from decline as ULI launches guidelines to assess transition risks.
The busy conference halls at the Munich event belied a lull in investment activity while the industry awaits stability.
The manager said lower refinancing LTVs and falling capital values could cause problems for maturing loans, but described the funding gap as ‘relatively modest’ in historic terms.
The manager, which provided the loan on behalf of investor Phoenix Group, says there is a strong social case for providing finance in the sector.
The UK specialist lender is aiming to lend £1bn by 2024, with the support of a new funding line from NatWest Markets.
Welcome to Real Estate Capital’s guide to the real estate debt advisers active in Europe today.
The cost of debt has risen sharply this year, and market appreciation for the value that debt advisers bring to the table has risen with it.