Yielding to debt

As real estate investors go back to cash flow fundamentals, lenders are going one step further in underwriting loans by reviving the debt yield test.

Private equity real estate players have gone back to basics across the globe when it comes to searching out the best opportunities.

Deals are no longer underwritten with cap rate compression or rent growth assumptions in mind. Rather, transactions have to be steeped in the cold, hard realities of property markets today.

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