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With a year to go before the UK’s EU divorce is finalised, its effect on the property debt market is looking complicated.
Investors will continue a flight to security in 2018 as political stability remains a chief concern but the fog of Brexit should reveal a path ahead, forecasts David Seymour, real estate partner, at the law firm Ropes & Gray.
Property debt professionals need to adapt to change, while preparing for a market correction, argued panellists at CREFC’s recent London conference.
Henderson Park’s Nick Weber is targeting value-add opportunities in a late-cycle market. Europe’s wall of debt maturities is helping to create them.
The European property industry remains cautious but positive on the coming year, bolstered by an improving macroeconomic outlook for the eurozone and real estate’s continued attractiveness as an asset class, according to the Emerging Trends in Real Estate Europe 2018 survey.
The report shows a raft of organisations keen to originate debt, but deals more difficult to source.
Real estate activity in the country remains strong on bullish demand for London core assets from overseas players, argued lender panellists at the recent LMA’s Syndicated Loans conference.
The Conservative government’s failure to secure an outright victory in Thursday’s general election will add to a climate of uncertainty surrounding the UK’s property market, warned lenders and real estate investment managers.
The triggering of Article 50 passed with little reaction from the real estate finance industry, but it brings into sharp focus the political and economic challenges facing the UK and Europe.
Property services firm Colliers International has predicted that the future policies of Donald Trump and Donald Tusk, European Council president, will have a greater impact on UK real estate than the imminent triggering of Article 50.