As this recent £17million case study shows, we’ve seen seen a marked shift in focus from international investors into the UK from residential real estate in prime locations, to commercial real estate in London and nationally.
This is a clear effect of the changing tax landscape, an increasing search for yield amongst international investors, and the market slowdown in the prime property markets in London. However, it does show an unchanged appetite to invest in the UK during the Brexit negotiations – the weak pound being a main contributor.
Private banks have been slow to fund commercial real estate
Our offices in Monaco and Dubai are reporting increased interest from international HNW individuals towards acquiring houses of multiple occupancy (HMOs), student property and assisted living facilities, together with traditional commercial and semi commercial property. Hotels, prime office buildings and so on remain popular.
This change in appetite has started to show in how international private banks are prepared to lend. Historically, you would only see these banks lend against commercial property for their most valued clients and often only against single assets valued over £20million.
We have recently seen several high-profile exclusive private banks introduce new lending guidelines for international HNW clients looking for finance against national commercial real estate and increasingly without the need for other assets to form part of the agreement.
This market continues to be serviced by challenger and clearing banks, but we expect to see more private banks move into this space.
Financing commercial real estate
If you are looking to finance or refinance commercial real estate, Enness is adept at sourcing some of the best specialist rates available on the market. Unlike other specialist brokerages, we are not beholden to just one lender and pride ourselves on our independence- essentially this means that we are able to scour the market for the best rates.
We have a wealth of experience in the commercial investment market and would be more than happy to discuss any of your commercial finance needs.