Stamford Snapshot: 3rd edition

Following on and an update from last Wednesday.

Our key observations over the last week:

• Continued bias in tightened availability of debt capital and those lending taking less risk and wanting greater return, the later in particular for the non-bank market.

• Demand for debt capital has fallen materially with the bulk of our origination in the last 30 days (just over $100m of volume, one of our best months in business) being from pre-COVID activity. Project finance demand is particularly down and for Stamford is now limited to commercial ventures with substantial pre-leasing already in place.

• Relief from lenders to borrowers at present remains largely in the form of covenant waiver and interest payment holiday, we do note however that interest continues to accrue to the loan balance. We also note that lenders will provide different forms of relief to different owner types, private office/owners versus assets in managed funds for example. We are recommending clients be aware here and deal with loan facilities as needed early.

• The private lending market remains active and in pockets excited by the opportunities this dislocation is providing. Residual stock loans remain keenly sought.

Again all Stamford State offices remain open but working remotely, including our Friday drinks now by Zoom! We are keen to talk with and help both borrower and capital partners alike.

Wishing you all well

Your certainty in commercial property capital