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Interest rates
An increase in rates could lead to some lenders reducing their maximum LTV levels, says Savills' Nick Hume.
Prospects of rising interest rates could drive increased allocations, research from NN IP shows.
The UK’s first interest rate rise in a decade has not ruffled feathers in the real estate market, and nor should it, comments Colliers' Walter Boettcher (pictured).
Henderson Park’s Nick Weber is targeting value-add opportunities in a late-cycle market. Europe’s wall of debt maturities is helping to create them.
Core investors’ growing interest in providing debt rather than buying prime assets outright makes sense in this prolonged stage of the cycle.
The question now is whether this is a ‘one and done’ move or a gradual realignment that will eventually end a decade of cheap debt.
The European property industry remains cautious but positive on the coming year, bolstered by an improving macroeconomic outlook for the eurozone and real estate’s continued attractiveness as an asset class, according to the Emerging Trends in Real Estate Europe 2018 survey.
French fund manager ACOFI has launched its fifth property debt fund, with a fundraising target of €600 million by July 2018.
Investors remain keen on real estate debt, as recent fund closes, including more than £1 billion for PGIM Real Estate, demonstrate.
Lenders and borrowers in the US real estate debt market should embrace historically low interest rates, as they will continue to hover near zero for the foreseeable future. That was the sentiment several real estate finance managers and directors voiced at the IMN Real Estate CFO Forum this week.