The emergent residential sub-sector is high on debt providers’ wish-lists. There are several good reasons why.
For multiple reasons, Europe’s biggest property market has been an outlier in the region during the course of the pandemic.
As Europe’s real estate markets gradually reopen following lockdowns, debt providers want to get back to work. But an additional layer of scrutiny is needed before they agree to new financing deals.
Before this cycle, there was little need for borrowers in European real estate markets to turn to intermediaries for advice. Now, debt advisors’ expertise is valued by many in the sector.
Colliers International’s Robert Campkin says debt secured against tenants’ credit is an attractive option for businesses amid the market uncertainty of covid-19.
While debt providers are right to be highly cautious of the troubled sector, there are compelling financing deals to be found amid the gloom.
An increased number of investors are optimistic about the long-term future of hospitality, but lenders remain circumspect for now.
Securitised real estate debt has been battered by the covid-19 pandemic. Now institutional managers must decide what to do about it.
Writing loans against office property is currently difficult. But lenders were already pondering the evolution of the sector before covid made things more complicated.
While our data show global real estate debt fundraising peaked in 2017, sentiment among institutional investors suggests the asset class is not out of steam.