The Lender Committee was formed under the chairmanship of Peter Denton, Starwood Capital, to offer an opportunity for the providers of finance active in the European CRE market to interact and address common issues.
Europe has seen a dramatic diversification and fragmentation of lender types. Balance sheet banks and capital market issuers now compete with a more mature subordinated debt market and growing interest from new entrants from the insurance and alternative investment fund management sectors.
The committee developed two papers to support the evolving market.
- The European Commercial Real Estate Lending Principles guide offers an initial layout of key principles to be considered when advancing secured investment loans. The recommendations assume a certain level of professional knowledge and experience of property lending. The document is intended for senior balance sheet, corporate, capital markets focused and subordinated debt lenders, as well as alternative lenders such as insurance and fund based capital providers. Publication of this guide coincided with the release by the Loan Market Association of its real estate finance facility agreement in April 2012.
- The European Commercial Real Estate Lending Tax Guide sets out, in general terms, common tax issues that prospective lenders should consider in their decision-making for lending to real estate investment structures. This document takes a high level approach to the situations that may arise, and should be considered when examining a debtor’s tax position. The document is intended for lenders, loan servicers, investors, restructuring advisors and participants in the European commercial real estate finance market.
We are considering whether market participants would value updated versions of these papers.
Please contact the chair or Peter Cosmetatos on +44 20 3651 5696 or firstname.lastname@example.org if you have any comments, questions or suggestions.