brexit

The Real Estate Finance business of consultancy Link Group, which is launching its fourth annual survey of the UK real estate debt market, expects to see greater supply of debt from German and other continental European lenders.

Although the H1 2019 survey recorded an increase in origination, it also highlighted areas of concern for debt providers.

Just as the Brexit vote dampened activity, this year’s political uncertainty is taking its toll. But, as in 2016, certain sectors remain resilient, writes Lorna Brown of Legal & General Investment Management Real Assets

The UK has been a hotbed for real estate debt funds, but uncertainty over Brexit and a high level of competitiveness are taking their toll.

The Qatar Investment Authority has signed a debt facility with a syndicate of six banks to refinance its global headquarters in the Canary Wharf financial district.

Industry figures at the annual Cannes gathering predicted another strong year for real estate, but acknowledged threats including Brexit and slower eurozone growth.

Retail property values are falling, forcing lenders to question their exposure to the sector.

The Pfandbrief Act needs to change if Germany’s lenders are to use cheap funding to write UK loans.

As the prospect of a disorderly Brexit grows, logistics investors are evaluating the potential costs and benefits of the UK’s impending divorce from the European Union.

The conservative use of debt by commercial property investors has reduced the likelihood of boom-and-bust, but the market is becoming more intricate in this elongated cycle.