Funds climb the risk curve in quest for new product
Funds climb the risk curve in quest for new product
- 2006
- EuroProperty March 2006, 24-25(2) .
European stock shortages have lead core investors to consider speculative developments. This is evident in micro-markets, such as the West End and M25 areas in London and the outskirts of Paris. Some projects will be funded from developers' own equity, while others will be secured through debt finance. Subsequently, banks are going up the risk curve to do speculative development in their backing of opportunity funds. Core investors and investment managers are also becoming more willing to take the path into riskier territory.
European stock shortages have lead core investors to consider speculative developments. This is evident in micro-markets, such as the West End and M25 areas in London and the outskirts of Paris. Some projects will be funded from developers' own equity, while others will be secured through debt finance. Subsequently, banks are going up the risk curve to do speculative development in their backing of opportunity funds. Core investors and investment managers are also becoming more willing to take the path into riskier territory.