Debt funds raise UK real estate lending share to 31%
Updated
Updated · Bloomberg · May 6
Debt funds raise UK real estate lending share to 31%
9 articles · Updated · Bloomberg · May 6
Bayes Business School data showed debt funds' share rose from 15% in 2020, while debt funds and insurers together held 45% of outstanding UK commercial real estate loans.
The shift leaves debt funds closing in on banks as the biggest lenders to the sector after five years of gains.
Banks have lost direct lending market share as post-crisis regulations constrained their activity, helping alternative lenders expand their role in UK property finance.
With debt fund defaults soaring, who is really winning in the UK's new real estate lending landscape?
As US regulators ease bank rules, will the UK's booming real estate debt funds face a sudden collapse?