Six new lenders have entered the UK commercial property market so far in H211, according to Savills - GE Capital, Legal & General, Jordan International, AIG, Jefferies International and Chalkhill Partners.
Six new lenders have entered the UK commercial property market so far in H211, according to international real estate advisor Savills - GE Capital, Legal & General, Jordan International, AIG, Jefferies International and Chalkhill Partners.
In addition, Savills reports that following updated market analysis, four further names should be added to its list of active bigger ticket lenders, namely AXA, Bawag, HSBC and M&G Investments. According to Savills, ‘bigger ticket lenders’ are those who are both actively seeking and have actually achieved a total new lending over the previous six months of at least £75.0M in typical loan sizes of above £20.0M.
William Newsom, Savills UK Head of Valuation, says: “This is extremely positive news for the market. Many of these banks have meaningful quantities of money to lend, albeit most of the German Pfandbrief-backed banks find loan to values (LTVs) above 50% challenging. Many banks are constrained by regulatory and capital adequacy issues, notably under Basel III, with a result that there is downward pressure on LTVs and upward pressure on interest rate margins. Margins probably have increased by 25 basis points over the last quarter, albeit against a background of continuing low cost of money.”
Savills bigger ticket property lenders list now includes:
- Aareal
- Aviva
- AXA
- Barclays Bank
- Bawag
- Bayern LB
- Deka Bank
- Deutsche Bank
- Deutsche Hypo
- Deutsche Pfandbrief
- Eurohypo
- Helaba
- HSBC
- ING REF
- Landesbank Berlin
- Met Life
- M&G Investments
- Royal Bank of Scotland
- Santander