Inflation

The cost of debt has risen sharply this year, and market appreciation for the value that debt advisers bring to the table has risen with it.

As inflation soars, so too does the cost of debt. The relationship between European debt advisers and their clients is now more important than ever, reports Ellie Duncan.

New credit facility, combined with recently raised equity, gives the grocery property investor £500m for an acquisition spree.

Panellists at REC Europe’s London event said inflation and rising rates are prompting greater scrutiny of potential financing deals.

Debt providers increasingly view hotels as an appealing asset class despite economic headwinds.

Senior industry executives are taking a very granular approach to valuing investments a time when market conditions are ‘very, very hard to read’.

With the war in Ukraine fuelling inflation and interest rates on the rise, real estate debt market participants are bracing for volatility.

The repricing in global financial markets since Russia’s invasion of Ukraine in February has put upward pressure on financing costs in Europe’s real estate sector.

The cost of debt increased overall in Q1 2022, remaining stable only in Zurich, according to real estate investment service CBRE.

Inflation hedging depends on the ability to grow rents and, in turn income, says Brad Gries, co-head and co-CIO, Americas at LaSalle Investment Management.