Market sources say non-bank lenders dominate the financing of such schemes as they look for returns in parts of the market underserved by traditional banks.
Historically, real estate has performed well when prices rise, but the pandemic era raises unique questions and challenges.
Following its acquisition of debt manager DRC Capital, Savills IM’s global chief executive says there is huge potential in credit strategies as banks retrench from real estate.
Ending government forbearance, inflation fears and heated marketplaces were top discussions items during affiliate title PERE’s first all-virtual Global Summit.
Inflation fears are back but mitigating forces should not be underestimated, says Jose Luis Pellicer, head of investment strategy and research at M&G Real Estate.
Louise Gillon, head of hotel finance at lender Leumi UK, says she is confident in long-term demand for high-quality accommodation in city centre locations.
According to one of the real estate finance industry’s leading recruiters, hiring activity in 2020 was concentrated in the non-bank part of the market.
Brexit and covid have been cause for concern for managers and investors. But some institutions have continued to forge ahead despite the challenges.
During 2021, equity capital will be diverted from offices and shops to beds and sheds, creating demand for debt finance. But lenders should not overlook opportunities elsewhere.
The Canadian pension, which is significantly underallocated in the sector, will aim to more than double the UK-based firm’s AUM in the next five years.