UK Prime Commercial Property Financed by German Banks

A survey carried out by Savills, UK-based property adviser, suggests that most large commercial property transactions in Great Britain are financed by German banks.

The results of the survey revealed on Monday, October 5th at EXPO property trade fair (Germany), suggest that out of 12 banks willing to finance property deals above £20 million, 9 lenders come from Germany.

In the past 6 months, German and British banks have given out commercial property loans totaling £100 million. These banks include: Deutsche Bank, Deutsche Postbank, Aareal, Bayern LB, Deutsche Pfandbriefbank, DG Hyp, Helaba, Eurohypo, WestImmo, Santander, Royal Bank of Scotland and Barclays.

Other British banks with large property portfolios, such as Lloyds and HSBC, are also becoming more active when it comes to financing of commercial properties.

The problem that most lenders face is the scarcity of deals in the sector of prime property, which results from the reduced flow of new marketed properties. Each good deal is had to be fought for with institutional buyers.