23 May 2024 | 1 min.

Investing in commercial real estate loans as an alternative to property investment

Many investors in private real estate invest chiefly in eal estate assets, whether directly or indirectly. However, investing in the financing of loans on eal estate assets can also be an interesting way to build real estate exposure. Commercial real estate lending has recently become more interesting for alternative lenders because the traditional banks are being put under increasing pressure by changing regulations to reduce the real estate loans they are allowed to have on their books.

At the same time, a large portion of the outstanding real estate loans will expire in the coming years and will have to be (partially) refinanced. This theatens to create a funding gap over the coming years, which will significantly incease the demand for real estate loans from alternative lenders. According to a.s.r. real assets investment partners, this offers an interesting opportunity for alternative lenders, such as institutional investors, to invest in real estate loans over the coming years. Especially as we expect interest rates to remain structurally at higher levels than we have seen in recent years.

Disclaimer

This is a marketing communication for professional investors. Investing involves risks. You could lose your money. Past performance is not indicative of future results. Before making any decision to invest, all features and goals of the investment product need to be taken into consideration, as set out in the investment product’s prospectus. a.s.r. real assets investment partners is a trade name of ASR Real Estate B.V. and listed in AFM’s register. More information on the investment service of a.s.r. real assets investment partners is available at asrinvestmentpartners.com/services. This communication has been drafted as carefully as possible. This notwithstanding, information in this communication may not be complete or fully accurate. Liability as a result of this marketing communication is not accepted.

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