What are the benefits of real estate debt investing? Are there signs of distress in the banking sector? Where are alternative lenders able to gain traction? These are a few of the questions Edward Boots, head of origination for continental Europe with M&G Real Estate, addresses in a recent Q&A published in the December issue of Institutional Real Estate Europe.
“Notwithstanding political and regulatory risks,” says Boots, “the outlook is largely positive, in our view. Given that real estate is a cyclical market, as interest rates normalise, investment volumes should rise, along with financing opportunities for lenders.
“We also expect increased central bank scrutiny on banks to be a continued theme, with the potential to impact the composition of the lending landscape. This is likely to increase the scope for alternative lenders, particularly those with the ability to allocate larger amounts in single transactions, we believe.”
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