The Commercial Real Estate Finance Council Europe has formed a European lender committee to produce lending market standard principles for property finance, chaired by BNP Paribas head of real estate finance Peter Denton. The group will circulate draft guidelines to CREFC members in the next two weeks, before releasing them to the market.
The investor reporting committee, chaired by Kumaresh Thiru, vice-president of Morgan Stanley Mortgage Servicing, also met this month to discuss the next steps for creating a standard for reporting on CMBS and real estate loans. It will now draft a revised user guide to be adopted on future deals.
The regulatory committee, led by Paul Hastings partner Charles Roberts, will produce a response to the Financial Services Authority’s latest consultation paper on strengthening capital standards. In a separate initiative, the Loan Market Association is working with up to eight banks and an equivalent number of law firms to devise a property finance loan template.
“We were approached by a number of banks who felt it would be useful to extend our suite of documents to real estate,” said LMA managing director Clare Dawson. “The template will set out a basis for negotiation and the parameters to be included, such as the sorts of representations and covenants that may be seen in a real estate loan document.”