The European real estate market continues to boom, and the capital markets are busy fuelling the frenzy. From financing private equity-backed M&A through lending to feed hungry CMBS conduits, bankers are working hard to fund the growth of property companies and meet the demand from investors for new product. As an important feature of the current environment, real estate investment trusts (REITs) – the tax exempt vehicles that started life in the US in the 1960s – continue their relentless spread across the world. The latest progress has been...Read more
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The European real estate market continues to boom, and the capital markets are busy fuelling the frenzy. From financing private equity-backed M&A to lending intended to feed hungry CMBS conduits, bankers are working hard to fund the growth of property companies and meet the demand from investors for new product. Paul Farrow reports.
In recent years real estate investment trusts (REITs) have spread from their US origins right across the world. With a few exceptions, European governments have been relatively slow to embrace the structure. But moves from France, the UK and – at long last – Germany look set to provide the sector with its next big boost. But challenges remain for a Europe-wide structure. Mark Baker reports.
The expansion of private equity funds into property has become a worldwide phenomenon, thanks to factors such as growing competition in traditional buyouts and the rising values in many real estate markets. There are some concerns that the weight of money could affect future returns, but funds with a hands-on approach to adding value remain confident. Patrick McCurry reports.
Lehman Brothers, and to a lesser extent Merrill Lynch, stole a march on other investment banks by originating their own non-conforming European RMBS product. Morgan Stanley, Deutsche Bank and JPMorgan have followed them, but at a time when the sector has lost some of its lustre and investors see more the risks than the rewards, are they right? Jean-Marc Poilpre reports.
The European real estate financing market has had a strong run over the past few years. Highly liquid conditions across Europe and the Middle East mean the asset class has become more attractive to lenders, and yields have fallen as a result. But with interest rates on the rise and US sub-prime woes putting nerves on edge, caution should be any lender's watchword. David Cox reports.
The long-awaited launch of the first European CRE CDO came at the end of 2006, though not without its challenges. Helen Wray examines the backdrop to the market, and its potential for further growth.
The interplay between covered bonds and RMBS looks set to become more complex going into Basel II, as the risk weighting applied by various bank investor institutions stands to vary considerably. It seems that the new regime will make it less easy to make money, and much easier to make mistakes. William Thornhill reports.
Russia’s mortgage market is attracting the world’s biggest banks, despite being worth a mere 2% of GDP. But real estate finance bankers see the country as having tremendous potential. The country’s first securitisation only came in July 2006, but it was rapidly followed by two more, and already market insiders are predicting five or six transactions this year. Oliver Bullough reports.
The last quarter may have been the UK commercial property derivatives market’s most active, as on some estimates £2bn–£2.5bn was traded. That compares with a cumulative notional of £4.6bn traded in 2006. But it will be the installation of global, over-the-counter (OTC) commercial property derivatives markets that tests whether the commercial property derivatives markets will flourish in the long-term. Jean Haggerty reports.