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The risk that the downturn in manufacturing might spread to the rest of the Eurozone economy has receded. Short-term indicators suggest that manufacturers’ export orders have stabilised and confidence among businesses in the services sector has increased since last September. Its forecast that the Eurozone economy will grow by 1.25% p.a. through 2020-2021, in line with recent progress. The main driver should be consumer spending, supported by higher real wages and increasing employment in the services sector. In addition, pressure from populist parties is likely to lead to higher government spending in France, Italy and Spain. Inflation in the Eurozone is likely to remain subdued at around 1% p.a. and its expected that the European Central Bank (ECB) will cut the deposit rate from -0.5% to -0.6% in the first quarter of this year and continue its programme of QE through to the end of 2021. Prime office rents in continental Europe rose by 4% on average in 2019, reflecting the growth in employment in tech and professional services. The current upswing in rents began in 2013/14 and while it is now one of the longest on record (the average is five years) we see no immediate reason why it should end, assuming the economy continues to grow. Office vacancy rates in Amsterdam, Brussels, Paris, Stockholm and the major German cities are at their lowest since the early 2000s and the recent upturn in building has been measured in most cities. Furthermore, while serviced offices are expanding and could be vulnerable in a recession, they are still a small part of the market, except in Amsterdam. Our forecasts suggest that Berlin, Madrid and Munich will see the biggest rise in average grade office rents over the next two years of 3-4% p.a., but most other cities will see rental growth

The term mezzanine finance as used within the UK is a description given to a combination of debt and/or preferred equity financing. Whether you are an investor seeking to place an investment, or a borrower seeking to maximise investment into a business, mezzanine finance is a popular and attractive solution. Mezzanine lending is a sum lent or invested into a business on a junior basis that ranks in priority behind senior debt, but ahead of standard equity. By virtue of being subordinated to senior debt, which in itself often secures the main banking facility, the returns reflecting the risk are likely to be higher, proving the old adage: ‘a greater return for greater risk.’ What the funds raised are used for are largely immaterial, but dedicated mezzanine finance providers would typically expect to see it used for capital expansion and growth. They are often used in leveraged finance transactions, in conjunction with other sources of capital, to fund the purchase price for the target company being acquired. In those circumstances, mezzanine finance will typically be used to fill a funding gap between what the senior lenders can lend and what the private equity sponsor will itself invest. In the UK, mezzanine finance can be made available through several different structures based on the specific objectives of the transaction. Mezzanine lenders look for a certain rate of return. This can come from cash or ‘payment in kind’ (PIK) interest, but also from an equity stake in the borrower. Mezzanine finance is an appealing investment to lenders for a number of reasons. To compensate the lender for assuming greater risks, mezzanine lenders can expect to require interest rates in the region of 12 -20 per cent. While mezzanine finance can take the form of pure debt, it can also be taken as

What is Mezzanine Finance? Mezzanine development finance is designed to act as a top-up loan, to bridge the gap between the developer’s available deposit and the loan available from the senior lender. Mezzanine funders will usually secure their position by taking a second charge over the development to ensure their capital is secure. By supplementing their borrowing with mezzanine finance, property developers can secure the highest return on investment, with the lowest deposit contribution. This financing option is generally used to reduce the deposit needed to undertake a property development project. Funding can be used to reduce deposits, to fund a gap in deposit, or to allow you to retain funds for future deals. 1 -Borrow up to 90% loan to cost 2- Terms from 6-24 months 3- No maximum loan size 4- Experienced developers preferred 5- Planning permission in place or permitted development rights available 6- Loans can include part of the land purchase costs How Much Can I Borrow With Mezzanine Finance? We can offer mezzanine funding from £250,000 with no maximum loan size. We can usually fund up to 90% of the total project costs using mezzanine finance. How Much Will Mezzanine Finance Cost? Mezzanine finance tends to be priced on a case-by-case basis. We work with lenders across the whole market to ensure we always secure the best terms for your project. Rates usually start at 1% per month. As the provider is sitting behind the main development finance lender, they are taking a much higher risk and will charge a premium as a result. Pricing will usually depend on the following factors: Amount of deposit input Likely demand for the finished product The scheme being lent against The strength and experience of the borrower The location of the project The amount required Secure the Lowest Mezzanine Finance

If you are a property developer or business owner who is finding it difficult to raise the required funds to pay off an urgent HMRC tax demand then a bridging loan can be a highly practical and uniquely serviceable lifeline. Although there are various sets of circumstances where HM Revenue and Customs (HMRC) may choose to grant you a payment extension – these are not always available and failure to pay your tax bill on time can result in very serious consequences. There are two situations where HMRC will expect and demand an immediate payment from you and these occur if: 1) HMRC think you can pay now. 2) HMRC are not convinced you can get your tax payments up to date. Either way, if you are running your own business, struggling to keep up with your finances owing to unpaid invoices and other cash flow problems, and suddenly faced with an immediate HMRC demand that could destroy everything you have worked so hard to achieve, then there could be an easy way out. A bridging loan secured against your property assets could be the perfect tool that will give you the time you need to get back on your feet and back in the red. By choosing to take out a short-term borrowing product in the form of a bridging loan, you can pay off your tax bill now and then pay off the bridging loan when you are in better financial shape further down the road. It is, however, important to remember that bridging loans are only intended as short-term products – so you will need to think about how you will pay the money back when the loan term is about to expire. In some cases, a bridging loan can be used as a speedily arranged, temporary fix until

A bridging loan is a type of fast, short-term secured borrowing which allows a buyer to move quickly when they need to. They’re “secured” for the lender – usually against the value of a property: either a property already owned, or the one being purchased. Or sometimes a “charge” is taken out against both properties to achieve the loan-to-value (LTV) ratio you need to minimise the cost of your borrowing. That’s why they’re faster to set up than long-term mortgage finance. It’s much quicker to establish the value of a bricks-and-mortar asset, than to verify employment status, income and affordability, and credit ratings. How much can I borrow – for how long? Bridging loans solve problems for buyers because they offer: Loans from £25,000 upwards Up to 70% of the value of the property (sometimes more, on investment properties, or in particular circumstances) Flexible loan terms, from as short as one month, or up to a year for a home loan (which may be extended) Or up to 3 years on commercial / investment properties Although bridging loans generally have higher interest rates than longer-term mortgages they can be used more flexibly. You can get a bridging loan for a property that is: For residential or commercial use Considered “unmortagable” Only going to be owned for a short period of time And there’s help with managing the cost of bridging loans: Interest can be “rolled up” and paid at the end of the loan term to avoid additional monthly payments Low arrangement fees are usually around 2% of the total capital borrowed. HOW QUICKLY can I get a bridge loan? This will depend on what you’re trying to do. Buying a residential property for your own use is a “regulated” transaction. The typical completion time of a regulated bridging loan can

The UK’s decision to leave the European Union has placed a great deal of uncertainty on Britain’s economic future.   No doubt, this will lead one group of investors to prosperity whilst causing serious grief for another, particularly where the property market is concerned.  To call Brexit a potential dividing line between financial success and failure for the many different types of UK property investors and UK property developers is something of an understatement, particularly where the UK housing sector is concerned. Of course, whether the Brexit vote results in a dramatic win or a substantial loss from your own perspective will ultimately be decided by which side of the fence you have found yourself on. Recently, the Nationwide building society published a report that indicated another fall in UK house prices with most properties experiencing a drop in value of around 0.4%.  This is the largest monthly fall in half a decade and the second drop within two consecutive months. The blame for this has been directly linked to higher inflation and a notable fall in consumer spending, which have also combined with Brexit, along with a drop in GDP to make matters worse for UK homeowners.  Of course, this is not the ideal scenario for anyone looking to secure the public vote in the next election. Both Sides of the Coin The fact that house prices are falling is particularly concerning, especially when one considers the fact that UK mortgage rates are still at an all-time low.  With UK unemployment also at a record low, most experts would predict that the housing market should be boosted in strength with prices steadily on the increase. However, this is not the case and this has meant that a large percentage of property investors and homeowners have had to sit back whilst their valued