Commercial Real Estate Equity LoanEquity loans for commercial real estate
8 million extra credit line for an £10.7 million sub-loan for an established mixed-use offices and hotels project in Brighton, Sussex. So far, the funds have received 82.2 million in redemptions and redemptions from debtors, which are now being re-invested in the sound pipelines of opportunity that have been pinpointed. So far, the funds have focused on a number of borrower in an ever more varied mixture of use categories after writing 242 million in credit with a total value of 361 million pounds of underlyings.
Total lending averaged GBP 14 million. Mr. Anthony Shayle, Head of Real Estate Debt EMEA (ex CH) and Senior Portfolio Manager at UBS-PREMF said:
Now the outlook for the investment category has further brightened with a deceleration in real estate prices appreciation, says Vincent Nobel, Head of Real Estate Debt.
Now the outlook for the investment category has further brightened with a deceleration in real estate prices appreciation, says Vincent Nobel, Head of Real Estate Debt. A new credit landscape: Although this is no longer a dominant cleared bank area, it has large credit portfolios. However, there is still great real estate enquiry and the UK is one of the best organised and least developed economies in the global economy.
A chance for priority indebtedness: Also, the risk-return profiles of these types of bonds are very appealing to institutions. In particular, deleveraging on priority credits was around 10%-20% below pre-2008 level, remaining at a more sustained rate than on pre-financial credits. Borrowing spreads differ based on the amount of funding provided and the exposure to borrowing risks of each investment.
The current credit markets for seniors have a margin of 250-300bps, compared to 600-800bps for middlemen. 5 percent per year over the next five years, we believe that our portfolio of real estate securities is an attractively low-risk option. The company is part of a 22-person real estate management unit that manages 7.4 billion pounds of real estate asset.
Whilst the six-member Hermes Real Estate Debt teams use their investment banking skills to value loan structure and loan beneficiaries, we work closely with our real estate equity experts to value the real estate, tenant and businessplan assets on an independent basis. Our double exposure improves our understanding of our main transaction metrics and enables us to deliver lending to senior groups of debtors who are managing real estate with robust long-term fundamental data.