Debt bodies launch guides for lenders

Two bodies have published documents aimed at helping real estate lenders. The Loan Market Association’s real estate finance agreement was published on 16 April, while the Commercial Real Estate Finance Council Europe published a tax guide for lenders and a lending principles paper.

The LMA represents lenders in the syndicated loan market and its 200-page guide provides a documentation template for drafting facility agreements for property investment deals.

LMA managing director Clare Dawson said the agreement was produced at the request of members who wanted a degree of standardisation.

“It is easier to syndicate something that looks like the market standard,” she said. “Our documents are seen as helping because they have been pored over by market participants.”

The LMA agreement was produced in tandem with the CREFC’s European commercial real estate lending principles, with each body represented on the other’s working party.

The LMA’s guidance sets out how to document a deal, while CREFC’s 19-page paper is to “encourage lenders to ask the right questions”, said Peter Denton, chair of the CREFC lender committee and head of UK lending at BNP Paribas.