Shaping the Future of European Real Estate: The Rise of Private Debt Lending

In this commentary piece, Mark Posniak, European Lending Director, talks about how the European real estate financing landscape has shifted significantly towards private debt, as traditional bank lending in the mid-market sector declines.

Published in React News, Mark’s comments on how this shift is driven by the rise of non-bank lenders offering more flexible and innovative funding options as well as regulatory changes. With investors drawn to real estate debt for its asset-backed security and yield certainty, several challenges present strong opportunities for development and lending. These include outdated housing stocks, demographic changes, and a lack of supply of new homes, all exacerbated by inefficient planning systems.

Helped by the underlying security of asset-backed transactions, Maslow Capital, part of Arrow Lending Opportunities, recently reached a significant milestone, funding in excess of £5 billion of developments and delivering more than 17,800 units across 258 projects without any credit losses of capital, interest, and fees.

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