There is no doubt that the development market remains challenging, not only for developers, but also for the banks and investors. With low interest rates and a shortage of available prime assets, combined with a potential "double dip" recession, there are both opportunities and uncertainties about how this year will progress.
Our report on the future of funding in the development market is based on a survey of 100 of our clients from across the real estate market, including developers, banks and investors. The most promising theme to emerge is a consensus in favour of a shift in the approach to development finance, with all respondents welcoming moves towards joint venture arrangements and equity participation. Some of the key findings include:
Whilst there continues to be some caution from all parties on development restarting in earnest, there are growing signs of optimism. The government may be unlikely to be able to do much in the short-term to encourage investment, but by shifting the way schemes are funded there is a clear way forward. As the report highlights, with joint venture structuring identified as one of the key ways to break the funding deadlock, greater understanding around the risks and opportunities could prove to be the answer.
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Real Estate Development - the future of funding >
If you would like to discuss any aspect of this research, or would value advice on any real estate related matter, please email me using the link below or call me on +44 (0)20 3400 4458.
Law Firm of the Year 2010 (The Lawyer). Berwin Leighton Paisner LLP is a premier, full-service law firm headquartered in the City of London. We offer pragmatic, commercial legal advice that helps major public and private companies, financial institutions, public sector bodies and private clients to achieve their goals. Our service extends to over 65 jurisdictions, with offices in Abu Dhabi, Brussels, Moscow (Goltsblat BLP), Paris and Singapore.
