Small & Mid-Market Lending Report 2024

Publishing date: 1 September 2024
The report will be published as a 16-page special on 1st September in the REC Europe Autumn Issue.
6,000 copies of the magazine circulate to Real Estate Capital’s unique audience in print and PDF format.  The result is an estimated readership of more than 23,000 individuals per issue.
In addition, the report is hosted on the website, sent out in the daily newsletter, and published on LinkedIn.
The website has a loyal and growing audience of over 9,000 registered users in more than 100 countries and attracts over 11,000 unique users per month.
Sponsoring firms receive a copy of the PDF to share on their website/social media platforms and with stakeholders/clients.

 

Bridging the gap

Over the last decade, a range of organisations have set up shop to provide real estate loans of a size that typically falls below the radar of traditional bank lenders and insurance companies. The enhanced risk that comes with underwriting real estate assets during covid-19 pandemic is discouraging banks from providing finance within the €10million – €50million property loan market, to the benefit of alternative lenders which are increasingly seeking new business.

Those with a focus on mid-market loans aim to do business in parts of the market that are perceived to be underserved by the larger, more established lenders.

Some are known as specialist lenders – boutique firms that focus on niches such as development finance or bridge loans. Some are fintech firms, which raise capital through online platforms. Some are challenger banks; relatively small retail banks that were set up to compete with long-established giants.

The new mantra in the commercial real estate market is ‘stay alive until ’25’ and to do that, sponsors are looking for short-term financing solutions that will allow them to bridge the gap between today’s high interest rate environment to what is widely expected to be relatively lower rates in the next year or so.
The key points of the report will include:

  • More sponsors are opting for short-term financing, hoping to ride out the current period of interest rate and economic volatility – how is that affecting demand for bridge loans?
  • What term do borrowers prefer right now – three year, five year, seven year, 10 year?
  • How has volatility affecting lenders’ ability to write new loans?
  • The strategies and structures lenders are offering to sponsors to bridge this gap.
  • How sponsors and lenders are structuring loans to include more mezzanine debt or preferred equity to get loans done?

For more information contact:

Matt Holroyd
Business Development Manager: Real Estate

T:+44 20 4548 4476
E: matthew.h@pei.group

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