Target returns and sustainability goals can both feature in real estate debt strategies, argue BNP Paribas Asset Management’s Christophe Montcerisier and Nicolas Toupin.
Across the financial and asset management worlds, claims about sustainability are coming under scrutiny. For real estate lenders, ensuring that their approach to ESG-related lending is clear and accountable is becoming imperative.
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.
A measure to allow some borrowers to request forbearance from special servicers could hinder new loan originations, said a Real Capital Analytics executive.
Historic low rates are a boon for capital seekers, but institutional investors face newfound uncertainty as lower for longer threatens to become lower forever.