Property debt providers are understandably preoccupied by the pandemic. But it is crucial that progress continues to be made in sustainable finance.
The current crisis is testing the strength of the country’s real estate debt and equity markets. It could also be an accelerant to change.
The post-coronavirus landscape will present new challenges for alternative lenders, writes John Cole of Cain International.
Although the property sector has created new challenges for banks during the current crisis, these institutions were already contending with larger pressures beforehand.
Our latest ranking of Europe’s real estate debt fund managers reveals the volumes of capital raised between 2015 and 2019 inclusive. Now, these managers face the challenge of deploying it in an uncertain market.
It is critical for private real estate equity investors to keep a close eye on what is occurring in the debt capital markets to best understand pricing nowadays, writes Justin Curlow, global head of research & strategy, AXA Investment Managers – Real Assets.
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 real estate lending market is largely on pause. But the deals closed since the onset of the crisis hint at what lenders are still willing to sign off on.
Syndication is slow and capital value forecasts are bleak, but CMBS transactions remain liquid and real estate is expected to retain relative value.
The business school’s end-year 2019 survey results show defaults were on the rise pre-covid-19, but that the market entered the crisis in a nonetheless stable state.