Fast reading
- Banks remain the dominant providers of capital in the European commercial real estate (CRE) finance market. However, banks’ lending approach is largely informed by their role as systemic providers of credit and by the short-term nature of their balance sheet liabilities.
- Non-bank lenders – such as asset managers – do not face the same pressures to minimise portfolio loan maturities or build highly granular, representative portfolios. A CRE lending approach that takes a relative value, bottom-up approach to evaluating opportunities can potentially be better suited to meeting the investment objectives of institutional investors.
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A non-bank lender approach to commercial real estate
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