Given the losses suffered by banks on legacy property loans, the real estate lending market’s diversification is of systemic importance.
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More evidence that Asian investors have their sights set on European assets, creating financing opportunities.
The use of subscription credit lines by private fund managers has come under scrutiny. Real estate equity and debt fund managers should take note of the discussion.
The availability of development finance remains limited across Europe, although alternative lenders are aiming to fill the gaps.
Pricing is not necessarily the deal-breaker in real estate loan deals, with sponsors increasingly focused on ensuring adequate breathing space in covenants.
Judging by what is happening to Europe’s other big logistics platforms, Brookfield’s refinancing of Gazeley could foreshadow a private sale to an Asian state buyer.
France’s vote for Emmanuel Macron as president will do much to calm European markets, including real estate and those who finance it.
Investors remain keen on real estate debt, as recent fund closes, including more than £1 billion for PGIM Real Estate, demonstrate.
Lenders continued to capitalise on the extended cycle, loan terms became more conservative, and banks remained dominant; De Montfort University’s 2016 UK CRE lending report provided plenty of food for thought.
France is due to go to the polls on Sunday and a June general election has been called in the UK. Politics continues to lead the agenda for European real estate.