Over the last few years, there has been an increasing convergence between traditional real estate finance, leveraged finance, and debt capital market products. Currently, this is being expressed in the form of high yield bonds.

Although far from replacing traditional forms of financing in real estate, there has been steady flow of corporate-style debt capital market transactions by real estate companies across Europe in recent years. This has included a small, but rising, number of high yield bond offerings. The most notable of these has been a series of successful high yield bond issuances by German real estate companies.

Real estate companies across Europe, including large, investment-grade rated British, French and German players, have been accessing the debt capital markets for years at very attractive terms, both in terms of coupons and tenors, as well as in terms of (a lack of) financial covenants. There have been a number of recent examples of such offerings fro