Bond issuance among
the top 10 biggest listed real estate companies in Europe has increased sixfold
since the financial crisis, according to Scope Ratings.
Between 2009 and
2014, the volume of bond issuances soared from €1.3bn (£943m) to €8.5bn, and
Scope predicted that issuances would reach €10bn by the end of this year.
Real estate companies are increasingly favouring capital markets
over banks, whose lending is more constrained.
The top 10 companies saw the portion of their liabilities from
banks fall from 54% in 2009 to 37%. Hammerson had the lowest, at just 10%.
“The capital market requirements on companies have proven clearly
more efficient than the criteria banks apply when granting loans,” said Philip
Wass, associate director of corporates at Scope.
Investment-grade companies can typically secure more competitive
terms through capital markets, he added. In June, British Land launched a £350m
convertible bond at a zero coupon.