Insights | October 21, 2024
Pan-European Real Estate Credit: An Immediate, Compelling and Expanding Investment Opportunity
A whole loan real estate credit strategy provides investors with a compelling and sustainable long-term investment thesis. Supported by an existing €2.0 trillion market, real estate credit looks particularly attractive at this stage of the market cycle.
The fundamentals which make the strategy appealing are:
- An expanding opportunity set due to mainstream bank funding supply constraints
- A wave of impending borrower refinancing requirements (forecast to total over €200 billion5 over the next 2 years) which provide for longevity and liquidity of investment thesis
- Superior risk adjusted returns in the current heightened interest rate environment
- Downside protection in the current climate of volatile valuations
- Portfolio diversification benefits
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