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

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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