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