Hybrid Bonds Help Fill Europe’s Real Estate Funding Gap

Law360, New York (January 30, 2013, 3:35 PM EST) -- As Europe’s commercial real estate debt market enters its sixth year of “credit crunch” disruption, it is increasingly clear that traditional bank lending will not be able to meet the demand for new finance.

The bank debt available at present is largely provided by German banks with funds raised in the Pfandbriefe market. The reliance of these banks on Pfandbriefe restricts them to providing low loan-to-value debt on prime properties in amounts typically below £100 million. The insurance and private equity/fund sectors have yet to make...
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