German Banks Supply 62% Of All Commercial Lending
German banks may have only represented 3 of the top 20 lenders during the property peak of 2007; however, their cautious lending appears to have paid off in recent years enabling them to grow in dominance across the whole commercial property investment sector.
According to research by property website Savills of the 21 investment lenders now willing to supply property investors with loans of over £30m, 62% of them are believed to be German.
Discussing this change in lending dominance, many property advisors are attributing this change to the outstanding £225bn debt that is currently weighing down on the UK property market. UK, Irish and US… all are believed to be suffering 44% losses in their capital values which have resulted in serious writedowns against what they are now able to lend.
Yet these Germans banks have clearly proven that being less aggressive is the safest route to continued lending, after being declared to be one of the few banks to continue lending strongly during the highs and lows of the last 3 years.
Of those lenders believed to be on the list the Deutsche Bank, Aareal Bank and Bayerische are heading the pack. Only the Royal Bank of Scotland and Lloyds TSB from the UK have managed to make the list…
However, whilst the commercial property sector may be changing in terms of its financing opportunities, property experts have reported positive signs from property developers across the property development sector who have received increased finance to begin building again. Hopefully the rest of the sector will quickly follow suit.
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- Private Banks Form Secret Syndicate Fund
- Mortgage Lending Rises
- Buy To Let Lenders Soften Lending Criteria
Tags: commercial property, property advisors, property developers, property development, property investment, property investors, property market
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