New lenders jump on commercial property bandwagon

London

NEW lenders are entering the UK commercial property market at the rate of almost one a week as they seek returns that beat corporate bonds and government debt.

Forty-six institutions started offering debt for the first time during the 12 months through May, taking the total for three years to 150, Savills plc said in a report on Tuesday. Increased competition has sparked a surge in syndicated deals, as UK lenders arrange loans and parcel them out to overseas banks and debt funds, according to the report.