As part of our periodic updates, here is an overview of recent developments of relevance to participants in the real estate finance market across certain key jurisdictions in Europe.
First and foremost, we hope all our readers and their families and friends are keeping well during these unprecedented times. As we heed the advice of our respective governments, we have adapted to remote working and continue to support our respective client and business needs. For our borrower and lender clients, we acknowledge concerns that COVID-19 may have on their new and existing loans. In our alert (available here), we considered the general themes that borrowers, lenders and financial sponsors must consider in their relevant finance documents, which include discussions on MAC clauses, force majeure provisions and frustration events (also considered here and here). Similar considerations are also of application for those clients that were involved in construction and engineering projections (see here for further information on this).
The governments across Europe have introduced fiscal stimulus measures and liquidity measures to help companies (details of the government support measures, are available here) through these difficult times. These measures can also have a drastic impact on the real estate finance markets, especially with measures such as mortgage payment holidays; a hiatus on the serving of eviction notices for rental properties and an inability for landlords to forfeit business leases due to non-payment of rent for a period of time. Greater emphasis will be placed on the