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The recent spate of debt fund initiatives is a clear sign that the European real estate lending landscape is undergoing a major structural change, according to Rob Wilkinson, chief investment officer at AEW Europe.

'This is one of the biggest developments to impact on the real estate market since the introduction of CMBS (commercial mortgage backed securities ed.),' he said during an interview at Mipim last week. 'Unquestionably this is the start of a long-term structural shift that will continue over the next three to five years.'

In recent weeks, a number of institutional players have announced plans to set up senior debt funds. Allianz and AXA are already active in the property lending market, but other players like CBRE Global Investors, Henderson and Cornerstone are also making moves to create their own debt platforms.

AEW is active on this front as well and is currently in 'active discussions' on the first close of a senior debt product, Wilkinson said. Last year the company appointed Russell Jewell to head up its private equity funds division and create a platform for new debt products.

Read the full story in the April edition of PropertyEU Magazine