Capital Markets | Alternative Investments | Structured Finance | M&A | Strategy & Advisory
The European CRE funding gap The current credit cycle is behaving very differently from the pre-covid ones; given the magnitude of the markets and sectors involved, there has been too little spillover. The amend, extend and pretend has allowed lenders to carry forward the large CRE exposures, especially in the office space, with no major adjustments so far. Nonetheless, bearing in mind the limited credit availability in conjunction with an estimated c.€40bn looming loan maturity wall (c.66% related to offices & 50% in Germany), there is little doubt that the existing funding gap will ultimately be the catalyst by i) leading banks and credit platforms seeking to raise liquidity and derisk, to sell distressed loans and assets and ii) forcing existing sponsors to liquidate good quality assets for securing liquidity, resetting the valuation at lower attractive levels while offering a prime investment opportunity for alternative lenders and real estate investors at lower entry value levels. #Europe #realestate #bankingindustry #investing https://lnkd.in/egb-mzT2
