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UK banks return to commercial property

Move pares lending margins by up to 2 percentage points

On the mend: Commercial-property values in the UK are rising for the first time since 2011 and British banks are increasingly willing to offer loans backing offices, stores and industrial properties. - PHOTO: BLOOMBERG

[LONDON] Private-equity firms, pension funds and insurers face dwindling returns on loans to the UK commercial property market as competition intensifies from banks that shunned the business after the financial crisis.

A new lender has entered the market almost every week in the past year...