Red Chilli Structured Finance specialises in property finance for Development or Investment in Residential or Commercial Property in UK and Europe.
With strong relationships with over 500 key lenders offering senior debt, mezzanine finance, bridging finance loans as well as joint venture partners and equity finance assures clients always receive a speedy and effective route to [...]

Activity in the housing market is slowing sharply as the credit crunch continues to hamper demand. This has led to house prices falling; so far there have been eight consecutive months of declining house prices with a total fall of 7.3%.
The combination of falling house prices and a weakening economy has led to confidence falling [...]

Five months into the year the German Open-ended Fund sector has received a total €3.7 billion net cash inflows. However, the net May inflows of €128.6 million were well below the €984 million monthly average received over January-April 2008.
This cash-flow slowdown in May is almost exclusively due to a net -€780 million withdrawal from HAUS-INVEST [...]

Property’s Yield Gap over Bonds Falls to 100bp. Following a modest decline in Q1, All Property rents were broadly flat in the second quarter of 2008 and over the first half of the year.  However, a loss of momentum in the UK occupier markets has meant that annual rental growth has slowed from 7% in [...]

Investment into UK Property fell to a 7 year low in the second quarter; with the lack of transaction evidence resulting in a yield shift of just 20bp over the quarter, half the rate of Q1.  Compounding the yield impact, rental values actually fell in thesecond quarter compared to moderate growth in Q1.  Nonetheless, All [...]

Lone Star sealed the financing for the sale & leaseback with banks Eurohypo, Natixis, DekaBank and Societe Generale, yesterday. It provided the remaining €300m (£238m) itself.
The fundraising comes after the global private equity investor and fund manager agreed a deal to buy the 1,267 strong portfolio in April in the biggest commercial property deal seen [...]

There was further evidence of a deteriorating housing market in the UK as government data showed annual house price growth slowed to its weakest in over two years during May.
The Department for Communities and Local Government (DCLG) found that annual house price inflation fell to 3.7 percent in May from 4.9 percent in April, the [...]

European commercial property markets are on the cusp of a funding revolution that could make securitisation largely irrelevant, one of Europe’s most experienced real estate finance experts said on Monday.
Neil Lawson-May, co-head of asset manager Palatium Investment Management, said banks were no longer dependent on issuance of commercial mortgage backed securities (CMBS) to replenish capital, [...]

As part of its mission to maintain monetary stability and financial stability, the Bank needs to understand trends and developments in credit conditions. This survey of bank and non-bank lenders is an input to this work. Lenders are asked about the past three months and the coming three months. The survey covers secured and unsecured lending to [...]

Amidst further bad news of bank write-downs and losses, the major Banks are clearly still wary of lending to each other and the 3-month LIBOR rate remains stubbornly high. The Bank of England’s latest Credit Conditions Survey gives little cause for optimism with regard to lending activity for the next few months, although the recently [...]

Bank lending still difficult.  LTVs and interest cover restrictive, lending margins still high and based on Libor. Typical cost of money 7+%. Banks syndicating less, but ‘clubbing’ together on bigger loans.  Three month LIBOR remains high at 5.85% compared to 5.0% base rate, unlikely to fall by more than 10-20 bps by year-end.
De Montfort University [...]

Recent market movement: UK property values continued to decline in Q1, though the pace of the correction eased from Q4. There are some signs of growing interest from potential buyers and this has encouraged valuers to moderate the pace of yield adjustment, at least for prime properties. As measured by the Investment Property Databank UK [...]