Anthony Mongone Comments on Commercial Property Market Amidst U.S. Bank Failures
Leverage has always been a central feature of commercial real estate but recent bank failures in the U.S. and the rescue of Credit Suisse by its rival UBS have added to fears that credit will become less available and more expensive. The growth of alternative sources of lending such as asset managers, sovereign wealth funds, and private equity firms could provide a key source of financing for the industry as banks pull back.
Real estate partner Anthony Mongone told the Financial Times that, “A lot of funds and investors are very hungry for deals. The fundamentals are still strong and there are opportunities in certain key market sectors, unlike the past.”
Investors may chose to invest funds outside the challenged office and retail markets, where assets should fare better.
“I think it may not be a total gloom and doom story. It may be more of an isolated doom and gloom story,” said Anthony.