The UK retail sector may be in crisis, but amid the challenges lenders can still find opportunities.
Europe’s commercial property debt market is becoming more complex and intermediaries that add genuine value can become a long-term part of it.
In the face of headwinds including Brexit, rate rises and high street woes, these trends show there is still a strong appetite to provide debt.
Last week’s UK interest rate hike is not an immediate cause for concern in the real estate debt market, but the gradual shift in monetary policy is a headwind.
While certain areas of the market continue to struggle, debt providers are increasingly drawn to the sector’s fundamentals, which offer an oasis of opportunity in the country.
Cosying up to Eastern money is a strategic must for European debt providers as strong demand from the continent for London offices mitigates Brexit outflows closer to home.
Yields have reached a floor in the country, meaning investors and lenders should focus on assets with potential for rental growth.
The financing of a shopping scheme in the country demonstrates banks’ returning appetite for real estate debt.
Soaring values should give lenders pause for thought, but European logistics fundamentals remain solid for now.
Investing in university accommodation on the continent makes sense, but finance can be difficult to source, writes Raj Kotecha, co-founder of Amro Real Estate Partners.