FAP Mezzanine Report 2021

Inhalt

In this, the seventh edition of the FAP Mezzanine Report, FAP Finance once again presents the current trends in the market segment for subordinate financing in the real estate industry. That market is changing: Loan funds are playing an ever-greater role and volumes per transaction are getting much bigger. At the same time, the absolute number of transactions is falling. Demand for mezzanine capital is growing, but it is mostly well prepared and solidly structured financing with an appropriate collateral concept that is being implemented. In addition, many finance providers have deliberately moved away from direct lending and traditional mezzanine loans in recent months, particularly because mezzanine lending has become too expensive.

This report highlights trends in the financing of both existing property and development projects across the following areas:

• Type of lender
• Financing by sector and location
• Capital tranches per investment
• Lending ratios and maturities
• Interest rate expectations
• Security mechanisms

The FAP Mezzanine Report 2021 also examines trends among institutional investors with regard to investment opportunities in mezzanine capital for real estate.