Borrowers

Legal issues finance parties could face during the coronavirus pandemic will most likely be linked to traditional financial covenants, argues one real estate finance lawyer.

A survey by Link Group shows few property finance professionals saw coronavirus as a major threat in January.

Our conversations with debt providers suggest many will favour a collaborative approach to dealing with difficulties faced by borrowers.

Following its signing of a €45m sustainability-linked loan, the fund manager’s ESG expert argues that such deals should remain high on the industry’s agenda, despite the covid-19 crisis.

With tenants now defaulting on rent payments, new regulations will play a critical role in lowering the number of casualties in the industry.

German lenders are lost for words, opportunistic credit specialists are gearing up, and sponsors are dealing with a loss of income.

The refusal by tenants to pay rent under a covid-19 lockdown has raised the fear of creating a ‘cascading effect’ among related contractual parties.

The Colony Capital boss says the US property loan market is on the brink. Lenders in Europe should take note.

Disciplined lending throughout the cycle should stand the non-bank lending space in good stead, according to Simon Wallace.

Industry professionals in the quarantined country insist no one is panicking yet – both because of strong fundamentals and the hope the lockdown is short-lived.