(18 June 2024 – APAC) Non-bank lenders continue to push further into commercial real estate (CRE) in Asia Pacific (APAC) FinanceAsia reports.
While incumbent Asian banks still account for 80 percent of loans issued in the region according to JLL, non-bank lenders such as private equity (PE) will account for an increasing share of real estate deals in APAC as volatility in public markets forces banks to take a more cautious approach to lending, Han Shih Toh reports.
“Restrictive monetary policies have led to capital value corrections and banks taking a more conservative stance to lending. Due to the end of the cheap-money era, return expectations of private debt is expected to be higher than private equity” stated JLL APAC Head of Capital Markets Research, Pamela Ambler.