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Development finance
Residential development in Spain is back, with banks again willing to provide finance and reckless lending a thing of the past.
London’s luxury flats are out of favour with lenders, as they focus on what is deemed ‘affordable’ residential in the UK capital.
German bank Pbb Deutsche Pfandbriefbank has financed a development in Munich’s city centre, with a €112 million loan provided to the Brecht-Bergen family.
When it comes to financing residential, it would be wise to choose schemes local people can afford to live in.
Lenders trying to capture high-yielding opportunities should consider the lack of debt available to buy land for Spain’s residential comeback.
The Northern Irish government has launched a £100 million (€111 million) fund to address the shortage of development finance.
An uptick in liquidity of development finance in the UK looks likely to fall far short of demand, as lenders remain cautious when it comes to construction schemes.
US investor Kennedy Wilson and its equity partner Fairfax have sourced a €45 million debt package to refinance the existing development loan on the second phase of the Clancy Quay residential scheme in Dublin.
Real estate investor and lender Cain Hoy has provided a £290 million construction loan to Lodha UK to fund the development of the Lincoln Square residential scheme in central London.
Ingenious, the London-based investment firm, has announced the hire of Tom Brown as its new head of real estate lending.