Stuart Watson
As conflict and raised interest rates reshape expectations, alternative lenders are competing harder for deals while underwriting cautiously, say participants in PERE Credit’s Europe roundtable.
As billions in commercial real estate loans come due in a higher-rate environment, advisers and servicers are finding plenty of solutions.
Rising competition is making it more difficult for US debt fund managers to deploy capital.
Debt advisers are playing an increasingly vital role in helping to restructure stressed capital situations.
The participants in Real Estate Capital Europe’s roundtable discuss the fallout from tariffs and assess the prospects for non-bank lending.
Conditions in European real estate debt markets favour alternative lenders. But sluggish investment activity is picking up only slowly, and underwriting remains challenging, say roundtable participants.
It is still early days for sustainable lending in the US, but the growth of C-PACE and green lending indicates the direction of travel.
Demand for short-term finance has surged as investors and developers seek to ride out market turbulence and ‘stay alive till 2025’.
Alternative lenders must navigate a market in which values are still unsettled and affordability is under pressure.
Banks’ withdrawal from the market as loans mature has opened a lending gap for private debt managers to fill.