France has replaced the UK as the largest European market for syndicated property loans as UK volumes dipped 56% in the first half of the year, according to Dealogic’s latest league tables.
Syndicated borrowing in the UK fell from €7bn (6.3bn) to €3bn (£2.7bn) year-on-year, while activity in Europe dropped by 36% to €16.5bn – the lowest first half since 2013.
However, France defied wider falls, reporting a 33% increase in volume to €5.4bn.
French bank Natixis topped both the overall bookrunner and mandate lead arranger league tables, while German lender LBBW led the pack as a non-recourse bookrunner.
ING led the non-recourse MLA category, followed by LBBW and Santander.
Dealogic said these trends reflect growing uncertainty across Europe as negotiations around Brexit continue, although France’s economy seems to be holding up.
Peter Cosmetatos, chief executive of lenders’ trade body CREFC Europe, said: “The UK’s decline, both in deal and lending activity, is striking but unsurprising given its advanced property cycle, slowing economy and political uncertainty.
“While the Brexit effect has shaken Britain, the rise of the French market is noteworthy.
“It remains to be seen whether the French cycle is reaching its peak, or whether renewed optimism under president Emmanuel Macron will give it a new lease of life.”
Dealogic’s numbers only take into consideration loan syndication, where a group of banks pool their resources to participate in a large loan, which means it does not pick up smaller deals in the market.
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