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Though new relationships are still on hold throughout much of the world, many kinds of investors are still finding ways to grow their real estate exposure.
Following the €435m first close of its latest credit vehicle, the manager’s debt experts discuss fundraising in the time of covid-19.
The pandemic has had a huge impact on how debt providers set prices, with different types of lenders facing different pressures.
The recent upsurge in the use of company voluntary arrangements on the UK high street is adding to the risk of financing retail property.
The global financial crisis saw the largest-ever sell-off of non-performing loans. The covid-related disruption may not be as bountiful for NPL investors, but it will offer select opportunities.
New research suggests there is a real estate debt funding shortfall ahead. But the problem is unlikely to be as severe as in the aftermath of the global financial crisis.
The investment manager expects the covid-19 crisis to create a debt funding gap, albeit far smaller than that seen after the 2007-08 crash.
Investors committed around $5bn of capital to Blackstone Real Estate Debt Strategies IV after the end of Q1 2020.
Financing deals in the UK capital this month suggest some debt providers are keeping faith in the city’s fundamentals.
Covid-19 is fuelling occupier demand for more flexible office arrangements, meaning less certainty for landlords and their debt providers.