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By Pierre KREEMER, KPMG Luxembourg*
The debt investment opportunity
The European real estate lending market is experiencing significant structural changes as a result of the credit and financial crisis and regulatory changes imposed on banks, its traditional source of debt. In the context of a structural deleveraging of the real estate industry, today, there is a huge financing gap(1) in the market, due to many refinancing deadlines, a general lack of liquidity and banks withdrawing from the lending market. As consequence of Solvency II(2) and Basel III, the banks have indeed minimum leverage and liquidity ratios to meet, and have significantly reduced their exposure to real estate.
As a consequence, institutional investors are...
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