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Commercial real estate debt survey
1.
In what allocation does your investment in CRE debt sit?
Real estate
Private debt
Fixed income
Alternatives
We do not have a defined allocation but invest opportunistically
We do not invest in CRE debt
Other (please state)
2.
Which performance benchmark(s) do you use/reference for your core mortgages investments?
Lifecomps
Merrill Lynch Corporate Industrial Index plus a spread
ACLI mortgage returns
Giliberto Levy mortgage index
Barclays single A Corps ex Financials
Other (please specify)
3.
Which performance benchmark(s) do you use/reference for your high yield/subordinate investments?
High yield Giliberto Levy index
Moody’s Below Investment Grade Corporate Bond Index
Other (please specify)
4.
What do you consider to be the average LTV for a senior loan?
50%
55%
60%
65%
5.
What do you consider to be the average LTV for a junior/mezz loan?
60%
65%
70%
75+%
6.
What are your return expectations for 2018 for each of the following:
Senior loans in Europe
-- Select an option --
2-4%
4-6%
6-8%
8-11%
11-14%
14% or more
Senior loans in the US
-- Select an option --
2-4%
4-6%
6-8%
8-11%
11-14%
14% or more
Senior loans in APAC
-- Select an option --
2-4%
4-6%
6-8%
8-11%
11-14%
14% or more
Junior/mezz loans in Europe
-- Select an option --
2-4%
4-6%
6-8%
8-11%
11-14%
14% or more
Junior/mezz loans in the US
-- Select an option --
2-4%
4-6%
6-8%
8-11%
11-14%
14% or more
Junior/mezz loans in APAC
-- Select an option --
2-4%
4-6%
6-8%
8-11%
11-14%
14% or more
7.
Generally speaking, do you expect to raise or lower these return expectations in 2019?
Raise
Unchanged
Lower
8.
How important are the following attributes of CRE debt to your decision to invest? Please rank each of the following:
Stability: CRE debt occupies a more secure part of the capital stack than equity, offering a measure of downside protection.
-- Select an option --
Very important
Important
Not very important
Not important at all
Income: Well-structured CRE debt offers the potential for steady and relatively high income-focused returns.
-- Select an option --
Very important
Important
Not very important
Not important at all
Relative value: Attractive risk-adjusted return potential relative to fixed income investments and direct real estate, particularly late cycle.
-- Select an option --
Very important
Important
Not very important
Not important at all
Diversification: Modest correlations to fixed income and direct real estate allocations provide diversification in a multi-asset class portfolio.
-- Select an option --
Very important
Important
Not very important
Not important at all
Market opportunity: Structural changes in the CRE lending market have created a long-term opportunity for alternative lenders to originate CRE debt investments with attractive risk-adjusted target returns.
-- Select an option --
Very important
Important
Not very important
Not important at all
9.
Please rate the following countries / regions based on which you feel offer the most attractive risk-adjusted returns for CRE debt investing. Scale of 1-5 with 1 being not at all attractive and 5 being extremely attractive:
1
2
3
4
5
N/A
US
1
2
3
4
5
N/A
Canada
1
2
3
4
5
N/A
UK
1
2
3
4
5
N/A
Continental Europe
1
2
3
4
5
N/A
India
1
2
3
4
5
N/A
China
1
2
3
4
5
N/A
Australia
1
2
3
4
5
N/A
Japan
1
2
3
4
5
N/A
10.
What is the one market, anywhere in the world, you have the most positive view of, in terms of CRE debt investing?
11.
What is the one market, anywhere in the world, you have the least positive view of, in terms of CRE debt investing?
12.
Do you plan to access private CRE debt over the coming 12 months in the following vehicles? (choose all that apply)
Commingled – closed
Commingled – open
Separate account
Deal by deal
13.
Is co-investment:
An essential prerequisite
A useful provider of upside
An option, no more or less
14.
Do you find the use of the following enhancement techniques acceptable in CRE debt investing?
YES
NO
Structural leverage (e.g., A-note/B-note structuring)
YES
NO
Financial leverage (e.g., warehouse lines)
YES
NO
Loan securitizations (e.g., collateralized loan obligations)
YES
NO
15.
Aside from a track record of out-performance, what qualities do you look for in a manager? Please rank the following qualities in order of how important they are for you.
1st
2nd
3rd
4th
Longevity of platform
Experience of team
Sourcing and origination capability
Great communication/transparency
16.
When considering selecting an investment manager, how important is the quality of GP reporting?
Absolutely essential
Very important
Quite important
Not a priority
17.
How important are a firm’s sustainability policies to your decision to invest in a CRE debt fund?
Absolutely essential
Very important
Quite important
Not a priority
18.
When considering selecting an investment manager, how important is it for them to have direct equity asset management capabilities?
Very important
Quite important
Can occasionally be important
Not important at all
19.
When considering selecting an investment manager, how important is it for them to be able to provide a credit rating for each loan?
Very important
Quite important
Can occasionally be important
Not important at all
20.
What is your $AUM
Less than $10 bn
Between $10 and $50 bn
Over $50 bn
21.
What is your institution type?
Public pension plan
Private pension plan
Investment consultant
Sovereign wealth fund
Foundation/endowment
Family office
Fund of funds manager
Insurance company
Asset manager
Other (please specify)
22.
Where is your company headquartered?
United States
Americas, ex-US
Asia Pacific
Europe
Middle East
Africa
23.
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