A conservative approach to lending is favouring real estate finance in core London, which is widening disparities in lending across the UK regions.
The past decade has been turbulent for European real estate finance, but the market that has emerged is more robust.
The recovery of the Spanish economy, and the country’s real estate market, is leading to a wider range of opportunities for lenders to deploy capital.
A reliance on external markets puts Germany’s real estate lenders in a vulnerable position, but also compels them to consider cautious moves into less familiar territories.
While real estate debt intermediaries have been a feature of the US market for decades, the need for them simply did not exist this side of the Atlantic, until this cycle.
Advisory services are becoming a more accepted aspect of commercial property markets on this side of the Atlantic, although they lag their heavily intermediated American counterpart.
Following Santander’s rescue of Banco Popular, its JV deal with Blackstone to tackle €30bn of distressed real estate assets could prove a success story for both the bank and the private equity real estate giant.
Europe’s largest private real estate deal will involve a €6.8 billion loan, but Chinese banks are likely to be first in line for the €3 billion that will be syndicated.
The state of German CRE lending: five crucial issues
Germany’s Pfandbrief banks are commercial real estate financing machines, propelled by momentum that shows no signs of abating.