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.
Trimont’s Michael Delaney argues that while the covid-19 crisis dominates the real estate lending market, the transition from LIBOR remains of crucial importance.
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.
With tenants now defaulting on rent payments, new regulations will play a critical role in lowering the number of casualties in the industry.
German lenders are lost for words, opportunistic credit specialists are gearing up, and sponsors are dealing with a loss of income.