Property finance: The perils and profit in private real estate credit

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 71 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 90%

대한민국 뉴스 뉴스

대한민국 최근 뉴스,대한민국 헤드 라인

Private credit for commercial real estate has never been stronger. It’s also running into trouble. “All of us need to be eyes wide open and alert. It is real estate and it is credit. Let’s not misprice the risks.”

Already a subscriber?Duncan Clubb, the national leader for business restructuring at global accounting and advisory firm BDO, has an increasing amount of work from non-bank lenders with problem loans to residential developers.

Australia’s private real estate credit is a growing, $75 billion market, which currently accounts for about 16 per cent – compared to the banks’ 84 per cent - of the nation’s $447 billion in commercial real estate credit, according to Foresight Analytics. No question about the current stress in domestic residential development lending; it’s widespread. In fact, the resolution of the problems are fundamental to rebuilding affordable housing supply.BDO’s Clubb says the non-banks increased their exposure to residential development as the banks reduced their appetite.

MA Financial’s managing director, asset management, Cathy Houston, says few bank or non-bank residential development loan portfolios would not have defaults. Nevertheless, all expect the sector to grow, in fact near double, to $146 billion and 22.7 per cent of the total CRE lending by 2028, according to Foresight Analytics.“Non-banks make up 50 per cent of the commercial debt market in the US, so we are four to five years behind,” he said.

“The defensive nature of private debt in the overall real estate stack offers enhanced safety, while the floating rate nature of returns provides a positive hedge against inflation.”Andrew Schwartz, the managing director of Qualitas – an alternative investment managerand a leader in the sector with over $8 billion in funds under management – is a veteran of real estate credit.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 2. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Lane Cove investment property bought in 1990 for $250,000 sells for $3.5 millionEleven buyers – a mix of young families and developers, who were eyeing it for its knock down potential – registered to bid. But one group didn’t even get a look in.
출처: smh - 🏆 6. / 80 더 많은 것을 읽으십시오 »