Competition among lenders for prime real estate lending deals in the UK market during Q1 2017 resulted in some unwinding of the rise in loan margins which occurred in the immediate aftermath of the UK’s Brexit vote last June, new research by CBRE suggests.
Global real estate ‘dry powder’ has hit $1.7 trillion driven by stronger economic growth, greater debt availability and growing investor confidence, said the CBRE Global Investor Intentions Survey 2017.
UK commercial real estate loan margins increased by around 40 basis points across the whole of 2016, with the bulk of the movement in the final week of June after the country’s EU referendum, according to new research released by CBRE.
The post-EU referendum slide in UK commercial property values seemed to reverse in October, with a slight increase recorded in CBRE’s latest monthly index.
International banks and financial institutions are making “worst-case” preparations to move up to 20 percent of staff overseas in anticipation of the UK’s withdrawal from the European Union, the chairman of the City of London’s policy and resources committee has warned.
Returns from UK senior debt stabilised in the first three months after the Brexit vote according to CBRE, but more volatility is likely in the coming months.
In its latest quarterly UK debt prospects report, the firm said its forecast for annualised gross returns from five-year lending in the third quarter 2016 was 3.1 percent, unchanged from Q2 2016.
CBRE Capital Markets’ Debt & Structured Finance a $140 million loan from Morgan Stanley for the refinance of Huntington Center, a 37-story, 907,010 sq ft Class A office tower in Columbus, Ohio, Real Estate Capital has learned.
CBRE Capital Markets has arranged one of the largest multifamily transactions of 2016, placing $500 million of Freddie Mac financing on Strata Equity Group’s $720 million acquisition of a 24-property portfolio spanning four US states.
Northwestern Mutual Life Insurance Company (NML) has provided a construction-to-permanent loan in excess of $85 million the development of 365 Nicollet Residences, a 30-story, 369-unit apartment tower in downtown Minneapolis.
Middle East investors vastly increased the amount of money they investment in US CRE during the last year-and-a-half compared to the previous two years, investing a larger percentage in New York than any other major city outside the Persian Gulf region for the first time in nearly a decade.