However, some institutions believe equity deals still are more attractive than debt investments in multiple respects.
Panellists at REC Europe’s London event said inflation and rising rates are prompting greater scrutiny of potential financing deals.
Panellists at CREFC Europe’s Autumn Conference said many lenders are struggling to quantify ESG incentives, despite an uptick in green mortgage issuance.
Amid continuing low interest rates, ease of availability and low return requirements, senior loans in Germany are tipped to “increase in attractiveness in the future” according to the EY Real Estate Capital Radar Germany 2016 report.
Engel & Voelkers Investment Consulting (EVIC) has appointed Thorsten Brogt as executive director of business development to oversee the roll out of its distressed debt/real estate opportunity funds unit.
A panel consisting of heads of financing from LaSalle Investment Management, Commerz Real, M7 Real Estate and IVG Immobilien agreed that borrowers are not generally requesting that lenders increase loan-to-value ratios in deals.
Lending margins in the German commercial real estate market are as low as 80 basis points over three-month Euribor.