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Inaugural Capita finance survey turns spotlight on UK commercial real estate lending

29th June 2017

Capita Asset Services and CoStar have developed an inaugural Capita Real Estate Finance Market Trend Analysis report, which aims to provide a regular analysis documenting the UK commercial Real Estate finance market.

The report takes a snapshot of the market to find out what lenders can do and what they see themselves doing over the next 12 months. The focus is on lender appetite and policy, with the report providing an opportunity to look into the art of the possible. The report features a hugely diverse lender pool in the UK, with 12 distinct lender categories. That diversity means almost anything is financeable, there are some black spots but lenders have significant ambitions to expand originations which bodes well for financing higher leverage requirements and/or challenging assets.

One of the most interesting outputs is the relative value assessment of lenders showing those who are relatively good value and relatively poor value at any leverage point. This combined with the other detail in the report should give borrowers a better idea of where to go to secure optimal financing solutions for any particular asset, portfolio or project.

James Wright, Head of Real Estate Finance, says “At Capita Real Estate Finance, we wanted to do something different with this report. As one of the main sponsors of the De Montfort University’s Commercial Property Lending report, we didn’t set out to study historic data sets as De Montfort do a phenomenal job on that front. We wanted to take a forward looking snapshot of the market to find out what lenders can do and what they see themselves doing over the next 12 months.”

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