Insurance News Archive

Big banks 'stop commercial lending'

The commercial property market could be stifled as research reveals that some of the biggest investment banks are not handing out loans to commercial property buyers.

William Newsom, head of commercial valuation at Savills, told the Telegraph that research revealed that eight of the UK's 97 commercial real estate lenders have stopped loans entirely, with a further 11 reluctant to take on risk.

He also said that almost 30 would continue lending for commercial property purchases but only on a limited basis where risk is minimised.

While Mr Newsom did not mention by name the lenders refusing to offer credit, the newspaper names some as Credit Suisse, Lehman Brothers, Bear Sterns, Deutsche Bank and Barclays Capital.

However, the number of banks which would syndicate commercial property debt has grown to six, compared to just one month ago.

Lloyds TSB and Eurohypo have also signalled their continued intent to lend on deals of over £150 million. Both backed the £400 million purchase by Telereal from the Royal Bank of Scotland.

31 Dec 2007