Partner quoted in ‘Real Estate Capital Europe’ on real estate’s refinancing conundrum

Partner Payam Yoseflavi was quoted Dec. 1 by Real Estate Capital Europe (subscription required) on Europe’s commercial real estate financing market, and a shortfall between debt due to be repaid at maturity in the coming few years and the money available to repay it. In reference to the future course of interest rate movements, Payam noted lenders also are riding out the situation until volatility settles by allowing for existing extension options to be exercised, incorporating new extension options for future use, or providing new loan extensions. “Lenders are quite keen to wait for the next round of valuations and at that point there will be discussions with borrowers about how they will comply with their loan obligations, perhaps asking for them to put in more equity, or provide deposits in accounts to remedy positions,” he said. “If borrowers can do this, then lenders will be more amenable to refinancing.”