Home Banks
Banks
A debt funding gap looms across Europe’s property markets. Yet banks and debt funds are well capitalised. Will their funding end up where it is most needed?
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 German residential landlord is renovating homes to help lower tenants’ energy bills.
Panellists at CREFC Europe’s London conference said uncertainty around interest rates and property values is making debt transactions difficult to underwrite.
Loans coming to maturity in the next two years will be hard hit by interest rate rises and decreasing loan-to-values, respondents said.
UK offices and retail are sectors of most concern as interest coverage ratios plummet.
Private real estate managers are being cautioned to garner a greater understanding of the vitality of their tenants to avoid triggering income clauses in their borrowing terms.
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.
The busy conference halls at the Munich event belied a lull in investment activity while the industry awaits stability.