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Real Estate

Barings’ Alamgir Counsels Caution as Real Estate Market Moves Toward Reboot

June 2024 – 2 min read

Nasir Alamgir recently spoke with PERE Credit about the importance of a measured approach in today’s market environment, as well as where his team is finding opportunity.

Barings is taking a measured approach to commercial real estate debt lending in today’s market, looking at a situation in which there is both a strong relative value opportunity but also some level of uncertainty.

Nasir Alamgir, Barings’ head of US and European real estate debt, told PERE Credit the firm is focused on what market participants have come to call “the three Bs”—building, borrower and basis—when looking at new loans.

“While loan structures have been better over the past 15 months,” Alamgir said, “we’ve started to see pricing compress in the first half of the year and when that happens, it often leads to allowances for higher cap rates, greater prepayment flexibility, or loosening of other covenants.”

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Nasir Alamgir

Head of U.S. & European Real Estate Debt

The document is for informational purposes only and is not an offer or solicitation for the purchase or sale of any financial instrument or service. The material herein was prepared without any consideration of the investment objectives, financial situation or particular needs of anyone who may receive it. This document is not, and must not be treated as, investment advice, investment recommendations, or investment research.

In making an investment decision, prospective investors must rely on their own examination of the merits and risks involved and before making any investment decision, it is recommended that prospective investors seek independent investment, legal, tax, accounting or other professional advice as appropriate.

Unless otherwise mentioned, the views contained in this document are those of Barings. These views are made in good faith in relation to the facts known at the time of preparation and are subject to change without notice. Parts of this document may be based on information received from sources we believe to be reliable. Although every effort is taken to ensure that the information contained in this document is accurate, Barings makes no representation or warranty, express or implied, regarding the accuracy, completeness or adequacy of the information.

Any forecasts in this document are based upon Barings opinion of the market at the date of preparation and are subject to change without notice, dependent upon many factors. Any prediction, projection or forecast is not necessarily indicative of the future or likely performance. Any investment results, portfolio compositions and/or examples set forth in this document are provided for illustrative purposes only and are not indicative of any future investment results, future portfolio composition or investments. The composition, size of, and risks associated with an investment may differ substantially from any examples set forth in this document. No representation is made that an investment will be profitable or will not incur losses. Where appropriate, changes in the currency exchange rates may affect the value of investments.

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This document is issued by Baring Asset Management (Asia) Limited. It has not been reviewed by the Securities and Futures Commission of Hong Kong.

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