Credi index points to continued credit market improvement in Sweden

Jonathan Boyd
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Credi index points to continued credit market improvement in Sweden

The latest issue of the Catella Real Estate Debt Indicator (Credi) has reported an increase from 50.3 to 50.5, marking a second consecutive quarter above the 50 level, and indicating that the related credit market continues to improve.

Catella project manager Martin Malhotra said such a period had not been seen since the autumn of 2015. He noted lower credit margins along with increased access to credit contributing to the trend.

“Furthermore, we are seeing a continued interest in bonds among property companies. In 2017, property companies listed on the Nasdaq Stockholm Main Market increased their volume of bonds by 80%, from SEK51bn to SEK91bn (€4.96bn to €8.85bn). In the spring of 2018, we also had the first new issue of property-related preference shares on Nasdaq Stockholm Main Market since May 2016, as NP3 issued preference shares of approximately SEK288m.”

Arvid Lindqvist, head of Research at Catella, added: “We are seeing a strong interest in centrally located office properties in large cities, especially in Stockholm, while it is becoming increasingly difficult to sell properties in secondary locations. We are expecting to see an increased yield gap between properties in A, B and C locations.”

The 22nd edition of the Credi report can be downloaded here: credi-april-2018