June 2017 Issue

    Editor’s Letter: The tools for development

    Financing property development requires an appetite for risk that relatively few lenders in Europe currently possess.

    Analysis: Catching up with the green agenda

    Real estate lenders are beginning to embrace the sustainability agenda, but a genuine green lending market remains in its infancy, writes Doug Morrison.

    Borrowers make the case for flexible covenants

    Loan terms should give sponsors the freedom to execute business plans, argued borrower panellists at the recent CREFC Europe Spring Conference. Daniel Cunningham reports.

    Constructing a new rental concept

    Banks and alternative lenders are slowly getting to grips with financing the development of purpose-built rental properties in the UK market, writes Lauren Parr.

    Construction finance: Arrested development

    Construction finance remains scarce across the UK and continental Europe, but alternative capital’s appetite may be growing, writes Lauren Parr.

    The challenges of development lending

    Financing development projects requires a unique underwriting process and far more ongoing scrutiny than in an investment deal, writes Lauren Parr.

    UK development finance: A question of location

    With an acute shortage of housing across the UK’s cities, the regions can offer more attractive financing opportunities than London, says alternative lender ICG-Longbow.

    In Focus: Making credit decisions

    Farrah Brown, head of treasury at TH Real Estate, is responsible for raising the debt that supports the investment manager’s strategy. She tells Jamie Henderson why it is an interesting time to be a core borrower.

    Fund level finance: The noise escalates

    There is a debate brewing in the private fund management universe, which includes real estate equity and debt funds, concerning a part of the debt market that serves it: subscription credit lines.

    Managing the cashflow

    Since Oaktree’s Howard Marks sounded the alarm on subscription line financing, criticism has rained down on an established product. Kalliope Gourntis spoke to investors and managers across the private asset classes about the facilities.

    Sub-line financing must be used appropriately

    Fund managers must be transparent about what the use of line financing means for investors, says Sally Doyle-Linden, partner and chief financial officer at private equity real estate firm Clearbell Capital.

    Asia Market View: The great Chinese work-around

    Faced with a regulatory crackdown on capital outflows, Chinese investors are finding ways to bypass controls on outbound investing, writes Arshiya Khullar of Real Estate Capital’s sister title, PERE.

    Everything in moderation

    Investors are broadly happy with the benefits that subscription lines can bring their funds, but the facilities may contain restrictions they need to be aware of.

    Korean investors shift to debt

    With property markets peaking, Korean investors are increasingly moving from equity to debt, writes Thomas Duffell of Real Estate Capital’s sister title, PERE.

    CAPITAL WATCH: Recent lending deals May 2017

    Investors continued to pile capital into the UK regional logistics market, creating opportunities for lenders.

    CAPITAL WATCH: Private real estate debt funds May 2017

    The latest figures compiled by our data team show there are 27 debt funds with known targets above €100m currently fundraising.
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