Alternative lenders

Welcome to Real Estate Capital Europe’s guide to the small-ticket property lenders active in the market today.

As Europe heads into a new interest rate and inflation environment, small-ticket real estate lenders are coming under pressure, writes Mark Cooper.

Providers of loan-on-loan finance are pricing in higher interest rates.

The newly branded Niam Credit plans to expand into mezzanine finance in preparation for widespread refinancing challenges in the region.

The firm’s real estate equity business last week received a A$600m commitment to back Australian development opportunities.

Panellists at CREFC Europe’s London conference said uncertainty around interest rates and property values is making debt transactions difficult to underwrite.

The New York-based firm is targeting $1bn to $2bn in originations in the region next year amid a 'super-interesting time' for non-bank lenders.

The lender originated the loan at a low debt yield but expects this metric to change as the sponsor executes a capex campaign.

The region’s well-developed banking market and strong macroeconomic features are creating a stable lending environment.

The latest Bayes Business School report shows there was £23.7bn of origination in the first half of the year, in line with the same period in 2021.