Banks

UK offices and retail are sectors of most concern as interest coverage ratios plummet.

Private real estate managers are being cautioned to garner a greater understanding of the vitality of their tenants to avoid triggering income clauses in their borrowing terms.

The latest Bayes Business School report shows there was £23.7bn of origination in the first half of the year, in line with the same period in 2021.

The busy conference halls at the Munich event belied a lull in investment activity while the industry awaits stability.

With further interest rate increases expected, lenders in the UK are finding it difficult to underwrite new loans.

The manager said lower refinancing LTVs and falling capital values could cause problems for maturing loans, but described the funding gap as ‘relatively modest’ in historic terms.

Christian Liedtke, chief executive of German asset manager Beach River Capital, argues European real estate is on a firmer financial footing than the central bank’s latest report suggests.

Debt providers hope new UK premier Liz Truss’s plan to tackle energy price hikes protects occupiers. 

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Higher lending margins were seen in many prime office markets.