Acquisition-related financing requests halved in the first quarter of this year for deals in excess of 拢50m (鈧�63.6m), according to Laxfield Capital.
The real estate debt investment manager鈥檚 鈥楿K CRE Debt Barometer鈥� found that demand for long-dated finance had increased substantially, triggered by falling rates.
Laxfield drew on a total sample of 1,293 loan requests totalling more than 拢89.1bn.
Emma Huepfl, co-principal at Laxfield Capital, said the start of 2016 was 鈥渕arkedly different鈥� to the final quarter of last year, with demand for acquisition finance on large deals falling.
鈥淣evertheless,鈥� she added, 鈥渧olumes remained high, boosted by a rise in demand for long-duration loans, as borrowers sought to extend maturities and lock into the low-rate environment.鈥�
Demand for finance on alternatives exceeded finance demand on core assets for the first time, the study found.
In an active period for non-core assets, there was high demand for hotel-related finance towards the end of 2015, during a 鈥渧ery strong year for the sector鈥�, Huepfl said.
Leverage levels were restrained, while demand for small and mid-market loans was very active.
Becky Worthington of the Property Finance Forum, which sponsored the report, said: 鈥淚t has been another interesting half-year, with clear signs of a market response to political uncertainty.鈥�
