Catella: As good as it gets?
In Catella’s Real Estate Debt Indicator (CREDI) for March 2014 the main index moves down 1.6 index points to 67.7. Despite the decline the Main index, well above the equilibrium number 50, still signals a favorable current and expected situation for borrowers in the Swedish property market.
Overall access to financing has continued to improve and credit margins have continued to contract between year end 2013 and March 2014. It is evident from 2013 and 2014 transaction data that leveraged investors have become more active buyers in the segment above EUR 100 million in deal size.
"Looking at the peak in the Current situation index and the drop in the Expectations index we can expect sentiment to move sideways in the coming months, while remaining on a level that clearly supports liquidity and risk appetite,” says Daniel Anderbring, research analyst at Catella.
In the listed property sector average loan to value increased 1.2 percentage points to 56.2 per cent in Q4 2013 while average interest rate dropped 0.2 percentage points to 3.8 per cent.
"At present we are seeing both credit margins and interest rates contract which drives earnings as well as investment activity for the leveraged investors,” says Niclas Forsman, capital markets analyst at Catella.
The seventh edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can be downloaded from catellaproperty.se. The next CREDI will be published in June 2014. CREDI consists of two parts: one is a survey and the other a set of indices. Read more about the method here.
Catella’s property advisory services comprise three service areas: Sales and Acquisitions, Financing, as well as Analysis and Evaluation. The business is established in 11 European countries and has more than 200 employees.
For more information, please contact:
Daniel Anderbring
Reserach Analyst, Corporate Finance
+46 8 463 33 60, +46 70 846 47 86
daniel.anderbring@catella.se
Press contact:
Ann Charlotte Svensson
Head of Communications
+46 8 463 32 55, +46 72 510 11 61
anncharlotte.svensson@catella.se
About Catella: Catella is an independent financial advisor and asset manager. We have operations in 12 European countries and some 450 employees. Catella has a strong offering in financial services through our business breadth, geographical coverage and leading position in the property sector. Catella is listed on Nasdaq OMX First North Premier, trading under the stock symbols CAT A and CAT B. The company’s certified advisor is Remium AB. Read more at www.catella.com.
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