Catella: Good to great on access to property financing, says survey
In Catella’s Real Estate Debt Indicator (CREDI) for the second quarter of 2013 the sentiment among lenders and borrowers on the Swedish credit market reached all-time high with an improvement from 55.9 in the first quarter to 64.9 in the second. The increase in the Main index reflects a strengthening of both underlying Current Situation and Expectations indices.
“A majority of both lenders and borrowers polled indicate an easier lending environment in the current and near term. This is reflected in the mix of real estate transactions in the first half of the year that saw geared investors taking a bigger share of total acquisitions,” says Daniel Anderbring, Research Analyst at Catella.
The alternative financing trend remains strong and the outstanding volume of corporate bonds and secured bonds issued by the listed companies covered by CREDI now amounts to more than 10 per cent of their total outstanding debt.
“We believe the trend of alternative sourcing of financing to continue and bond issues with security in underlying properties to capture a larger share of the total real estate related bond market,” says Niclas Forsman, Capital Markets Analyst at Catella.
Among the listed companies covered by CREDI, average loan to value ratios have dropped to 53 per cent in Q1 2013 – supporting the trend of deleveraging established in 2009.
The fifth 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 September 2013. CREDI consists of two parts: one is a survey and one part comprises 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 Valuation. The business is established in 11 European countries and has more than 200 employees.
For further information, please contact:
Daniel Anderbring
Reserach Analyst, Catella
+46 8 463 33 60, +46 70 846 47 86
Press contact:
Viktoria Ejenäs
viktoria.ejenas@catella.se
+46 8 463 33 34, +46 72 726 33 34
About Catella: Catella is an independent financial advisor and asset manager. We have operations in 12 European countries and 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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