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REC’s view

Although the property sector has created new challenges for banks during the current crisis, these institutions were already contending with larger pressures beforehand.
Our latest ranking of Europe’s real estate debt fund managers reveals the volumes of capital raised between 2015 and 2019 inclusive. Now, these managers face the challenge of deploying it in an uncertain market.
Equity is committed and ready to invest in prime European property, but a lack of clarity on debt terms is an issue for investors.
The real estate lending market is largely on pause. But the deals closed since the onset of the crisis hint at what lenders are still willing to sign off on.
Syndication is slow and capital value forecasts are bleak, but CMBS transactions remain liquid and real estate is expected to retain relative value.
The business school’s end-year 2019 survey results show defaults were on the rise pre-covid-19, but that the market entered the crisis in a nonetheless stable state.
Coronavirus shutdowns have pushed nearly $25bn of US CMBS loans to the brink of delinquency, and the worst is yet to come.
Lenders are facing calls to grant interest payment holidays, force majeure is on people's minds, and operational property is expected to be hardest hit.
Commercial tenants have been granted rent holidays as they deal with the impact of covid-19. Now, pressure is mounting for debt providers to grant similar treatment to their borrowers.
question marks
German lenders are lost for words, opportunistic credit specialists are gearing up, and sponsors are dealing with a loss of income.
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