Borrowers

The pandemic will make it difficult to invest capital during the first half of the year but declines in asset pricing are expected to help deal volumes rebound in H2 2020.

Sentiment among Germany’s real estate lenders has plummeted, although those closing transactions are reported to have raised loan margins.

The lender provided €129.5m to fund the private equity firm’s latest German investment.

Losses and write-offs on retail debt could reach £10bn, while £22bn of development loans face delays, the latest UK lending market report by Cass Business School predicts.

Borrowers with financially engineered performances face covenant breaches amid a market correction, warns AXA IM – Real Assets’ head of research and strategy.

A measure to allow some borrowers to request forbearance from special servicers could hinder new loan originations, said a Real Capital Analytics executive.

Commercial tenants have been granted rent holidays as they deal with the impact of covid-19. Now, pressure is mounting for debt providers to grant similar treatment to their borrowers.

Legal issues finance parties could face during the coronavirus pandemic will most likely be linked to traditional financial covenants, argues one real estate finance lawyer.

A survey by Link Group shows few property finance professionals saw coronavirus as a major threat in January.

Our conversations with debt providers suggest many will favour a collaborative approach to dealing with difficulties faced by borrowers.