German Sector dominates UK Property Market
Three-quarters of the 12-strong list of companies willing to financially back the UK commercial property market are made up from the German banking sector.
Two UK banks and one Spanish bank complete the list which comes from a Savills Report released at the EXPO property trade fair in Germany today.
German banks included on the list are Deutsche Bank and Aareal who have both given large loans of at least £100 million-plus in the previous six months. Other banks who make complete the make-up include Deutsche Postbank, Bayern LB, DG Hype, Eurohype, WestImmo, Helaba and Deutsche Pfandbriefbank.
The report focuses on large transactions for UK commercial property deals over £20 million with the Germans being singled out as the prime movers.
The banks are fighting over a paucity of prime property largely focused in the City of London. The area is a favourite of institutional purchasers as they offer the twin factors of rental income security and prestige of being associated with the City.
Leading the British charge are the banks Barclays and RBS, who along with Spanish bank Santander make up the other three places in the top 12 list. Fourth biggest UK bank Barclays told news agency Reuters that they were looking to renew its focus on UK property meaning that real estate investment and corporate bankers are being brought under a single banner. The hope is by doing this they can lure clients from its UK peers.
The report also focused on HSBC and Lloyds Banking Group as other UK banks with existing property loans who have looked at restructuring existing customers commercial loans.