The German bank’s £205m loan to Mirae demonstrates the opportunity for European lenders to back South Korean investors.
Political turmoil has caused unease in the commercial real estate sector, although some are still prepared to lend in the country.
Amid warnings of ‘enormous complacency’, deepening gloom on the UK’s high streets should encourage lenders to adjust their strategies.
The consultancy’s valuations directors warn that a correction in property values could temper lenders’ risk appetite.
Speaking at the Loan Market Association’s Real Estate Finance Conference, Blackstone’s Gadi Jay explained the borrower’s approach to loan structures.
The return of CMBS creates additional liquidity for the European market, but its scope should remain selective.
Lenders at the Loan Markets Association conference expected the real estate debt opportunity to persist.
Competition to lend in Q1 2018 led to margins tightening in smaller Western European countries, the consultancy’s European Debt Map shows.
Under pressure from the ECB, Greece’s largest lenders are finally bringing loan portfolios to the market.
A lack of product amid strong competition is the top challenge facing real estate finance professionals surveyed by the Loan Market Association.