CRE Finance Council Europe has launched a consultative document outlining principles for new commercial mortgage-backed securities (CMBS) issuance.
The trade association's new Market Principles for Issuing European CMBS 2.0 aims to help bring confidence back to the European real estate capital markets and stimulate the further development of European CMBS in order to address the immediate need for senior debt in European commercial real estate transactions. Citing sources that estimate new debt origination in the European commercial real estate markets has declined by 77% over the last five years, CRE Finance Council Europe says that its proposed principles are intended to help address a number of CMBS legacy issues, focusing on transaction structures, transaction counterparties and disclosure of appropriate levels of information.
‘We welcome this consultative document which results from a collaboration of parties across the commercial real estate property sector in the U.K. and Europe,’ says Jaymon Jones, director of strategic initiatives at CRE Finance Council Europe. ‘The launch comes at a time when the European new issuance market has effectively been closed for the last five years, held back by legacy issues and the lack of alternative funding as traditional investors have all but fallen away. It is imperative that we return confidence to the European real estate debt markets and address the pressing need for capital for future commercial real estate deals.’
Industry feedback on the proposed principles is open through Sept. 18, and the principles can be reviewed online.
