Lenders eager to finance real estate development - report

Polish lenders are willing to invest 70 percent of the equitable value of profitable real estate projects, according to a report complied by consulting company, KMPG. KMPG surveyed over 90 financial institutions in 21 countries. The report showed that overall there was huge progress in financing developmental projects in Europe by the banking sector. European lenders are eager to invest in real estate which is based on a firm business model and will result in high quality assets. In Poland, for the first time since 2010, retail real estate rather than office projects appeared to be the more preferred asset type as far as lenders are concerned. What is more, when Polish lenders were asked about additional sources of financing, they pointed out developers/investors as well as bonds and insurers. In addition, none of the Polish banks asked said they were going to sell part of their commercial loan portfolio. The full report is available here.