Cross-border borrowers and valuations dominate Hamilton Bradshaw roundtable

At Hamilton Bradshaw Real Estate Lending's third breakfast session, lenders and brokers agreed that realistic valuations, sector income and a borrower's overseas assets now shape which deals get done.

Hamilton Bradshaw Real Estate Lending (HB REL) hosted its third private breakfast roundtable on 28th October at The Wolseley, London.

Lenders, brokers and advisers met to discuss the UK and European property lending market as it heads into 2027.

The session was led by James Caan CBE, chairman and founder of Hamilton Bradshaw, alongside Alastair Carmichael, head of real estate lending, and Oliver Birt and Oliver Adler.

Guests included Ashley Hammond from Academy Consulting, Edward Searle from HyLend, Raphael Lesser and Taqid Tohala from Navigate Finance, Mark Bradley from Bevis Marks and Raed Hanna and Mayad Rassam and Scott McKinnon from Mutual Finance.

Where most lenders won't go: UK borrowers with assets abroad

James said HB REL's clearest edge is with borrowers whose wealth sits outside the UK.

"If you look at the UK market, so many UK borrowers have assets in the South of France or Dubai," he said.

"We've done quite a lot of those deals. Most lenders shy away, because the legal jurisdiction can be a challenge."

James, who now lives in Monaco, said being on the doorstep of the Riviera gives the team an advantage. "As I now live in that part of the world, I'm familiar with it and engaged with it," he added.

HB REL's recent book reflects that focus. It includes a refinance against a property in Cap Ferret, a bond secured against two prime properties in Saint-Tropez, and a 67% LTV bridge against a commercial asset in Paris.

Valuation expectations: "the value bit"

The room agreed that educating borrowers is now one of the most important parts of the job. Valuation expectations are still too high.

James said that gap is the main reason deals fall away. "The number of deals we walk away from comes down to that point," he said. "The market is still going down. With LTV it's the value bit that matters. If I can get the value, then the loan makes sense. If the gap is going to widen over time, it's not suitable."

His advice to borrowers and brokers was simple. "Listen to the market. The market doesn't lie."

Income, Middle East capital and geopolitics

Attendees said lenders are now looking at some sectors very differently, mainly because of the pressure on income.

Underwriting is now as much about sector income as the asset. Where tenants run into trouble, the income behind the loan is at risk. What matters most is that the loan gets repaid.

Alastair said geopolitical uncertainty is pushing investors to continue diversifying. Institutional investors tend to follow global trends, he noted, but commercial real estate still offers real opportunities for smaller investors and lenders.

The 180-day value debate and a hands-on lender

The 180-day value sparked one of the liveliest debates of the morning. Attendees argued that lenders and buyers need to be more closely aligned on how a property is valued.

James said HB REL deals with that risk through personal diligence: "I meet the borrower personally, and I visit every asset."