– During the first quarter of 2010, lending conditions clearly eased, with available loan sizes increasing and margins over libor decreasing, according to Invesco. The fund manager expects this trend to continue through the rest of 2010 in line with improving economic conditions.
– For prime offices in France and Germany at 40% loan to value, Invesco would expect margins of around 100 basis points (based on German sourced lending). While this is an improvement on recent high margins, it is still far from the 50 basis points seen during the 2005-2006 period and the fund manager does not expect to get back to those levels within the next 12 months.
