alternative lenders

The US manager has backed former Tyndaris real estate boss Clark Coffee’s new venture to capitalise on dislocation in the European lending market.

Loan distress is brewing, banks are playing it safe and alternative lenders are aiming to make gains in the market.

Although many lenders have scaled back their activities considerably, some see property credit as an enticing opportunity in a dislocated market.

The US real estate big hitter has struck a deal to take on Swiss manager GAM’s European property debt business.

The London-based manager, which has begun investing its sixth and seventh credit vehicles, says covid-19 has forced sponsors to adapt their strategies.

Europe’s real estate debt providers have become more selective about what they are prepared to lend against.

The report, authored by the business school formerly known as Cass, reveals new UK lending dropped 34% to £15.5bn in H1 2020.

The Berlin-based advisory and investment firm records 151 investors currently active in Germany’s subordinated debt market.

Speaking ahead of the publication of its H1 2020 report, Nicole Lux of The Business School at City, University of London says lenders have focused on the residential sector.

Following the €435m first close of its latest credit vehicle, the manager’s debt experts discuss fundraising in the time of covid-19.