Those with shorter debt maturities face significant refinancing risks, while those with longer profiles are better positioned to ride out the storm. European real estate investment markets have experienced significant shifts in the underlying drivers in recent years. Mostly this has been driven by macroeconomic conditions, including rising interest rates as a response to spiking inflation, and a general economic malaise that has permeated most markets, though less so Ireland. This has dented confidence to levels not seen since 2011 or 2012, with the lack of available financing, at sensible pricing levels, one of the primary issues. An oddity that has emerged in this cycle is that market rents have continued to climb, even for offices, while investor confidence remains on the floor. The turnaround, which is edging closer and closer, will be driven by debt, not by occupier demand. As central banks tightened monetary policy to combat inflation, listed property companies (mostly REITs) and other property funds faced growing questions related to their indebtedness. Much of this was debated around Boardroom tables, with many conversations drifting to AGMs as investors began to air frustrations. Key concerns included soaring loan-to-value (LTV) ratios as property values fell, a situation outside the control of management, but it was how executives reacted to rising debt costs which became the key battleground. As debt began to edge towards maturity, the rising cost of refinancing became an issue that could push management teams to make hasty, and even rash decisions on what to do with...

In a personal and candid interview with Andrew Teacher, Peter Denton, CEO of Homes England, discusses how his upbringing has shaped his career and driven him to lead the Government’s housing agency. He outlines his vision for bridging the gap between the public and private sectors in meeting housing targets, emphasising the relationship between delivery and economic growth.