Interest rates

Europe looks on as challenging conditions cause debt problems for one of the industry's biggest names.

Signs of easing inflation are giving some lenders more confidence to underwrite loans.

Two of the biggest names in private real estate were engaged in conversations with their lenders about loans that are now due.

Users of loan-on-loan financing may want to provide their lenders additional protections in this period of uncertainty, say Richard Hanson and Julius Maximilian Rogenhofer of law firm Morgan Lewis.

The impact of myriad lending sources pulling back at the same time has been worse than many are willing to acknowledge.

In an update to its refinancing shortfall analysis, the manager warns the potential gap is far larger than originally anticipated.

Managing partner Dale Lattanzio says the market is stable enough to execute deals.

The manager, which has sourced a £42m loan for a Birmingham BTR scheme, will pause further borrowing activity in the sector due to the rising cost of debt.

The loan servicer predicts finance will focus on bridging the debt funding gap and green upgrades, says Serenity Morley, managing director, loan servicing, at Mount Street.

As a new economic reality comes into focus, real estate companies will be working with much uncertainty in the months ahead.