A continued pause in the UK property investment market is expected following the Bank of England’s latest interest rate rise, which will further impact affordability of loans.
Payment in kind is an option which, due to interest rate rises, is increasingly in demand from sponsors and borrowers. Lenders must make sure they are applied only in appropriate circumstances, say Daniel Hendon and Phil Anscombe of Proskauer Rose.
Receiverships at Docklands office buildings in London suggest even prudent senior lenders will be impacted by problems in the office sector.
A full-scale financial crisis currently looks unlikely, but there is further potential for volatility, the manager warned.
The head of Europe for the risk management firm sees sponsors aiming to push out debt maturities by up to two years.
Debt funds and alternative lenders step into the space left by banks, Real Estate Capital USA data shows.
This is the Washington, DC-based company’s first ever credit-focused investment vehicle.
Lone Star founder John Grayken sees a limited window for distressed investing while most people wait for private real estate market conditions to settle. He discusses it with Jonathan Brasse.
Equity-focused managers tell the PERE Europe Forum they are increasingly considering lending strategies.
The manager has raised €1.2bn for European-focused debt opportunities as volatility persists.