The commercial real estate finance body CRE Finance Council Europe has launched proposals to improve CMBS loans.
The group issued a document, the Market Principles for Issuing European CMBS 2.0, today, with the aim of rebuilding confidence in the ailing European CMBS market.
The consultation period runs until 18 September.
The working group hopes that changes such as providing investors with a better quality of information about the CMBS that they invest in and clarifying the roles of service providers that manage the loans could rekindle confidence in the market.
Debt origination has fallen by 77% over the past five years in European commercial real estate markets, due to the unstable macroeconomic climate and legacy issues.
Nassar Hussein, head of the CMBS 2.0 committee and founder and managing partner of Brookland Partners, said: “The new principles address the weaknesses exposed in historical CMBS structures, such as the need for greater transparency and provide a more equitable and workable framework for future CMBS issuance.
“The ultimate goal will be to create not only more market liquidity but also assist in laying the foundations for a new capital markets debt model moving forward.”
sophia.furber@estatesgazette.com
