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Real Estate Restructuring & Banking

Since the downturn in UK commercial real estate values post mid 2007, the real estate banking industry has faced, and continues to face, a multitude of challenges. Regulatory changes including the implementation of BASEL III has played its part in driving the real estate banking community to seek greater liquidity through reorganisation and restructuring, whilst new lending throughout the senior to mezzanine debt spectrum, has aside from isolated cases, all but ceased.

There has been a relative lack of refinancing activity since the downturn which is of concern to some, especially when c. £19bn of the total c. £56bn UK CMBS financing is due for redemption between 2011 and 2014. Most of these loans were originated pre 2008 when real estate values were significantly higher and therefore the road ahead may be a precarious one.

The high levels of real estate distress have brought a new focus centred on gaining greater liquidity, clearer understanding and monitoring of balance sheets and a return of core lending to responsible and experienced borrowers, at appropriate loan to value levels secured against good quality real estate. However, the recent market turmoil has also provided an opportunity for investors to acquire real estate assets at historically low and attractive prices and, for those with equity, the past few years have provided some very good pickings.

Research and insight

  • Value recovery
    Property based solutions for lenders, special servicers, administrators and investors.

Issues and trends within the industry

The Deloitte real estate banking team comprises practitioners from all areas of our business including the property expertise contained within Drivers Jonas Deloitte and typical services include:

 

Useful links

  • Meet the team
  • Research & publications
  • In the press
  • Careers
  • Submit a request for proposal
  • Contact us

Key contacts

  • Nigel Shilton
    Restructuring & Banking Lead Partner.

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