Subject: Re: BN - refocusing as insurance investor ?
It appears to be a very timely switch. It may be harder and more expensive to fund real estate investments.

Fortress Investment Group says rival lenders are running shy of a $4.5 trillion market for property loan refinancing over the next three years, putting its commercial real estate credit business on track to achieve a $5 billion milestone for new deals by end-2026.

Spencer Garfield and Noah Shore, global co-heads of the division, said some regional US banks and debt funds hampered by legacy problems had so far shown limited interest in a massive volume of maturing loans in the upper middle-market space, where bricks and mortar values have tumbled as much as 40% versus their peak.

Real estate borrowers, who typically lock down financing for between three and five years, are working out how to refinance loans that benefited from an era of ultra-low interest rates that ended in 2022. Rising debt funding costs have dented asset valuations and borrowers also need to generate additional cash flow on those properties to pay for their new, more expensive debt.


https://www.bloomberg.com/news...