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Collaboration between Mera and LSE for examining non-bank financing options in the United Kingdom's property market

Real estate sector in the UK may see a shift, as Mera Investment Management collaborates with the London Stock Exchange (LSE) to examine the influence of non-bank lending institutions.

Collaboration between Mera and the London School of Economics to evaluate alternative financing...
Collaboration between Mera and the London School of Economics to evaluate alternative financing options in the United Kingdom's property market

Collaboration between Mera and LSE for examining non-bank financing options in the United Kingdom's property market

Mera Investment Management, in partnership with the London School of Economics (LSE), has embarked on a research project aimed at exploring the role of non-bank finance in the UK real estate market. The project, which also includes Synova Capital and London & Quadrant (L&Q), will delve into borrower trends, lending conditions, and investor sentiment.

The research, led by professors Olmo Silva and Dr Ignacio Aravena-Gonzalez of LSE, will engage with a range of borrowers and stakeholders to track year-on-year borrower sentiment regarding non-bank lending. It will also include insights from high net worth investors and a broker survey tracking demand-side lending trends.

The report produced as part of the project will cover topics such as asset types most financed using private credit, loan structure, interest rate expectations, geographic focus, and macroeconomic influences like geopolitical risk and inflation. The findings could potentially shape the future of real estate funding.

In a statement, Edward Matthews, chief executive of Mera, highlighted the growing importance of private credit, asserting that institutional capital is filling the gap left by retreating banks. He stated that private credit is no longer a niche, a sentiment echoed by the institutional shift seen in the industry, as evidenced by Align's recent hire of a new head of fundraising.

However, the specific challenges facing the private credit market that CWAN is addressing with its upgraded solutions were not detailed in the article. The project aims to provide a comprehensive understanding of the private credit market, offering valuable insights for all stakeholders.

The influx of institutional capital brings increased liquidity and competition to the private credit market, a development that is expected to benefit both borrowers and investors. The research project promises to shed light on these dynamics, offering a valuable contribution to the ongoing conversation about the future of real estate funding.

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