The need to refinance a huge pile of maturing debt, lenders’ reticence to fund retail, and the growing importance of cashflow were among key topics raised at the consultancy’s latest Financing Property presentation.
Just as the Brexit vote dampened activity, this year’s political uncertainty is taking its toll. But, as in 2016, certain sectors remain resilient, writes Lorna Brown of Legal & General Investment Management Real Assets
Many of the emergent lenders targeting the country’s smaller-scale property loan space have yet to prove their staying power, but some are building solid businesses.
There are benefits for debt providers in looking outside the mainstream real estate sectors. But financing alternative property assets requires an understanding of the factors driving demand.
Commercial mortgage-backed securities issuance in Europe is gathering steam, with at least four deals in the pipeline.
An increase in lending activity, a retreat by the German banks and a drop in residential development finance are among the key trends highlighted by the business school’s latest report on UK property lending.
Although some borrowers are asking for higher leverage, lenders should only provide it when there is a clear opportunity to add value to an asset.
Retail property needs to adapt to survive. And to ensure it has an adequate supply of debt, lenders and borrowers must adjust their approach.
Spain’s ‘bad bank’ will not put large portfolios of toxic assets up for sale, despite high demand from investors. This refusal might be unnecessary.
Investment volumes for German offices are down as investors and their lenders increasingly look to Spain.