The European real estate sector is evolving and diversifying in many more ways than seen before. Capital flows are increasingly global and financing is more available from a broader range of debt providers; while the investor profile and their risk-return requirements are also changing.
Macro-economic factors are driving some of this, together with legislation and regulation. Across Europe the restructuring of its banking system continues to impact liquidity and the availability of financing from traditional lenders, at the same time creating opportunities for non-bank lenders and debt funds to come into play. While debt funds potentially receive relatively advantageous treatment under Solvency II, the solvency capital requirements for CMBS is even more punitive.
In general the market is moving towards a more balanced and varied provision of debt for European real estate, which could potentially limit the impact of future systemic risks from the financing sector.
The question to be discussed is where next for real estate lending in Europe
Presentation by Justin Curlow, Commercial Real Estate Finance Investment Strategist, AXAReal Estate Investment Management
Rodney Dukes, Taylor Wessing
Richard Spencer, Managing Director Real Estate Principal Investment Area, Goldman Sachs
Rob Clayton, Partner, DRC Capital
Michael Shields, Managing Director, Head of REF Western Europe, UK, USA and Structured Products, ING