Weak property loan market sentiment despite improvement for the banks

Parties on the Swedish property loan market continue to experience a challenging financing situation . This is revealed by Catella’s CREDI (Catella Real Estate Debt Indicator) indicator, which regularly measures the temperature on the Swedish property loan market.

“CREDI demonstrates that sentiment among parties on the market is characterised by continued pessimism, both as regards the trend on the property loan market during the period May to August, and also for the coming quarter. The positive trend we have seen as regards the banks’ own financing situation has yet to have a tangible  impact on the  aggregate market sentiment to date, although the real estate companies surveyed are cautiously optimistic about the upcoming quarter. In addition, we believe that we have experienced a nuanced improvement in the dialogue with parties on the market during August,” says Daniel Anderbring, research analyst at Catella.

In addition, on 23 August Catella held its annual real estate seminar, at which approximately 100 managing directors and senior executives from the Swedish real estate industry took part. At the seminar, participants were asked to respond to twelve mentometer questions concerning real estate financing. This time, the results of this survey (see attached document) serve to complement CREDI.

“In the answers to the questions at the real estate seminar we see, for example, that a majority of the participants believe in an unchanged transaction volume for 2012. At the same time, no less than 64% answered that access to real estate financing is the most decisive factor for the development on the market. Increased access to real estate financing is a key factor for creating increased optimism on the market,” says Anders Palmgren, Head of Catella’s European Corporate Finance operations.

The second edition of CREDI is attached and can be downloaded from catellaproperty.se. The next CREDI will be published in November.

CREDI consists of two parts: one is a questionnaire addressed to Swedish listed property companies and banks active on the Nordic market regarding their assessment of the change in current and future loan terms and access to loans on the Swedish real estate financing market. The other part comprises a composite index based on publicly available information which shows the overall trend as regards loan terms, such as debt/equity ratio, term to maturity, and borrowing costs for listed Swedish property companies.

Catella Corporate Finance is a leader on the Swedish market for advisory services in connection with property transactions and property-related services within debt and equity capital markets. Catella Corporate Finance has some 50 employees and offices in Stockholm, Gothenburg and Malmö. The company is a part of the Catella Group.

For more information, please contact:
Anders Palmgren
Head of Catella's Corporate Finance operations
+46 8 463 33 10

Press contact:
Viktoria Ejenäs
Communications Officer, Catella AB
+46 8 463 33 34, +46 72 726 33 34 

About Catella: Catella offers specialised financial services and products within selected market segments. Catella has 430 employees in 12 European countries within two operating segments; Corporate Finance and Asset Management. Catella is listed on Nasdaq OMX, First North Premier and its shares are traded under the abbreviations CAT A and CAT B. Remium AB is Catella’s Certified Adviser, 46 8 454 32 00. Read more about Catella at www.catella.com.

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