Private Equity Spotlight Sweden’s bank-dominated real estate market ‘needs’ alternative lenders
Apr 16, 2025
The Swedish real estate market is undergoing an intriguing transformation as rising borrowing costs challenge traditional banks’ dominance. Experts discuss the urgent need for alternative lenders, highlighting their potential to fill gaps in financing. With new regulations affecting lending capacities, firms have developed innovative refinancing strategies. The rise of key players like Kinnerton Capital suggests a future where non-bank lenders play a vital role in a recovering market. This shift could stabilize the sector significantly by 2026, offering more options for borrowers.
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Sweden's Real Estate Stability
- Sweden's real estate market avoided the expected distress despite rising borrowing costs.
- Domestic lenders and bond market reopening played key roles in stability.
Nordics' Funding Gap Challenge
- The Nordic region faces a large funding gap, second only to Germany in Europe.
- Many loans maturing soon may struggle to get refinanced due to current lending conditions.
Heimstaden's Debt Management Example
- Heimstaden issued €2.7bn in bonds to fund a major acquisition in 2021.
- They managed refinancings through bank loans, bond buybacks, and asset disposals to navigate market challenges.