June 2017 Issue

Financing property development requires an appetite for risk that relatively few lenders in Europe currently possess.

Real estate lenders are beginning to embrace the sustainability agenda, but a genuine green lending market remains in its infancy, writes Doug Morrison.

Loan terms should give sponsors the freedom to execute business plans, argued borrower panellists at the recent CREFC Europe Spring Conference. Daniel Cunningham reports.

Banks and alternative lenders are slowly getting to grips with financing the development of purpose-built rental properties in the UK market, writes Lauren Parr.

Construction finance remains scarce across the UK and continental Europe, but alternative capital’s appetite may be growing, writes Lauren Parr.

Financing development projects requires a unique underwriting process and far more ongoing scrutiny than in an investment deal, writes Lauren Parr.

With an acute shortage of housing across the UK’s cities, the regions can offer more attractive financing opportunities than London, says alternative lender ICG-Longbow.

Farrah Brown, head of treasury at TH Real Estate, is responsible for raising the debt that supports the investment manager’s strategy. She tells Jamie Henderson why it is an interesting time to be a core borrower.

There is a debate brewing in the private fund management universe, which includes real estate equity and debt funds, concerning a part of the debt market that serves it: subscription credit lines.

Since Oaktree’s Howard Marks sounded the alarm on subscription line financing, criticism has rained down on an established product. Kalliope Gourntis spoke to investors and managers across the private asset classes about the facilities.

Fund managers must be transparent about what the use of line financing means for investors, says Sally Doyle-Linden, partner and chief financial officer at private equity real estate firm Clearbell Capital.

Faced with a regulatory crackdown on capital outflows, Chinese investors are finding ways to bypass controls on outbound investing, writes Arshiya Khullar of Real Estate Capital’s sister title, PERE.

Investors are broadly happy with the benefits that subscription lines can bring their funds, but the facilities may contain restrictions they need to be aware of.

With property markets peaking, Korean investors are increasingly moving from equity to debt, writes Thomas Duffell of Real Estate Capital’s sister title, PERE.

Investors continued to pile capital into the UK regional logistics market, creating opportunities for lenders.

The latest figures compiled by our data team show there are 27 debt funds with known targets above €100m currently fundraising.