LONDON-Well, Stuart Reid ought to know. The Berlin partner of locally based investment advisor Rockspring Property Investment Managers just completed a $369-million refinancing of its German Retail Box Fund.
Now, in the wake of that mega-refi, he shares with GlobeSt.com some thoughts on what German banks are looking for and what the lender needs to bring to the table to get a mortgage deal done. First, he notes, banks, not unlike those stateside, favor retail, residential and industrial. “They're not so keen on office, unless it is long-let,” he adds.
They'll also require that the average unexpired term be longer than the loan term. Senior loans will go up to 60% “of German mortgage bank valuation,” he says, “which in itself is about five to 10% below RICS valuation.”
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
