Finance and non performing
loans
Real estate finance is the
cornerstone of loan books for many banks and financial institutions
involved in lending. For the majority of borrowers with real estate
assets, this type of finance is a significant factor within their
overall finance package.
The turmoil in the world’s
financial markets, coupled with the dramatic slowdown in real
estate markets and rapid recent devaluation of real estate assets
is presenting significant challenges to all providers and users of
real estate finance.
New and existing
transactions are all subject to increasing scrutiny, with covenants
and conditions precedent in particular under regular review.
Restructuring,
renegotiating and refinancing is often required – usually within
tight timetables – in order to resolve real or anticipated breaches
and to satisfy the – sometimes conflicting – needs of all parties
involved.
The scarcity of finance
available is already leading to innovative and complex solutions –
including the incorporation of mezzanine, junior and subordinated
debt structures - and this trend is expected to continue as more
real estate loans reach maturity or a point where lenders can no
longer waive existing breaches.
Our team comprises lawyers
with experience in finance, real
estate and tax and is able to provide a seamless
service, addressing the complications of both small and large
lending transactions seen in real estate.
In the current economic
climate our lawyers with experience in insolvency and dispute
resolution are increasingly involved in real estate finance matters
which are in or nearing a distressed state.
In addition to the more
conventional real estate finance work, we work closely with our
Funds Group in the structuring and setting up of property funds,
and their funding of real estate investments. We also work closely
with our Structured Finance and Securitisation Group who have
worked on over sixty RMBS and CMBS securitisation transactions over
the past few years and have a great understanding of the unique
issues arising from these methods of financing.
Real estate assets are not
necessarily pure investment assets and there are often significant
trading businesses underlying their value. We have experience in
the finance of all types of real estate assets ranging from major
office, retail and residential developments through institutionally
owned properties to trophy residential properties.
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