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Thought Leaders 2021: Tougher credit rules open door for debt

The real estate private debt market in Europe is currently worth about €80 billion and counting. One reason is that traditional banks must now exercise more restrictive credit policies and the regulatory environment is also getting tougher for them.

“Things are getting harder for the traditional banks and in the same moment an alternative financing source is really necessary,” said Martin Bassermann, chairman of the board of Helvetic Financial Services.

There is a lot of demand for financing from both the residential and commercial real estate sectors and these dual pressures are leading to significant growth in the real estate private debt market. “I expect significant growth in the real estate private debt market,” Basserman told Real Asset Insight’s Richard Betts.

HFS, founded in 2009, is active in the sector, having started as a mezzanine lender with €85 million equity, growing to €1.4 billion today.

The firm now lends in the senior tier so can cover the entire capital structure of an investment. And currently has a £500 million pipeline.

Click on the video to watch the full interview or listen to the podcast below.