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An expected increase in acquisitions gives lenders hope that financing mandates will follow
Before this cycle, there was little need for borrowers in European real estate markets to turn to intermediaries for advice. Now, debt advisors’ expertise is valued by many in the sector.
Colliers International’s Robert Campkin says debt secured against tenants’ credit is an attractive option for businesses amid the market uncertainty of covid-19.
Financings like the £60m, five-year revolving credit facility for Supermarket Income REIT should become more regular in the UK grocery retail sector as demand mounts.
While debt providers are right to be highly cautious of the troubled sector, there are compelling financing deals to be found amid the gloom.
The firm had more than $20bn of inflows in Q2 2020, which includes significant capital raised for the Blackstone Real Estate Debt Strategies IV.
Nordics lender Nordea offered competitively priced debt, but was picked to finance the Trinity Quarter development, in part to strengthen the US manager’s lending ties in the region.
Western and southern Europe are on the menu in the first instance for the UK insurer, followed by the Nordics, newly-appointed head of real estate James Spencer-Jones tells REC.
An increased number of investors are optimistic about the long-term future of hospitality, but lenders remain circumspect for now.
Jayne Backett, banking partner with law firm Fieldfisher, says debt providers need to consider the unique risks of financing data centres.