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Secured property debt market could be a win for investors

, 29/10/2019

Real estate professionals have revealed that they believe the secured property debt market is attractive for investors.

According to a survey by Fitzrovia Finance, 63 percent of professionals in the real estate sector hold this view while almost half (48 percent) said this is due to opportunities arising from the impact of increased regulation on mainstream lenders and the growing capital requirements placed on them when providing short-term and development property finance.

Another large proportion of respondents (41 percent) said the market is attractive due to a shortage of housing in the UK, while around a quarter viewed it as attractive due to its history of value creation.

However, the professional real estate investors interviewed believe the overall residential property lending market will remain static this year, 30 percent expecting it to grow and the same percentage anticipating it will shrink.

Brad Bauman, CEO, Fitzrovia Finance, said in a statement: “Our research shows many professional real estate investors believe there are attractive opportunities in the property debt sector for individual investors. However, with so many property funds and investment platforms to choose from, it is important that investors understand the processes each has in place for managing risk, their experience and track record.

“Our research found that the most important feature for real estate professionals considering using a property debt investment platform is the expertise and track record of its management team. Our specialist team at the heart of Fitzrovia Finance have an established track record of over £100m in secured property lending. With 100 years of combined expert management experience.”

Fitzrovia Finance was launched to institutional investors in September 2017 and has so far loaned £120 million with no defaults.

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