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May 26, 2022


What can go wrong with CRE finance?

What can go wrong with CRE finance?

In commercial real estate finance, knowing what can go wrong is critical to success. 

At Madigan, we believe that understanding what can go wrong is critically important when underwriting and structuring loans from the outset.

The Australian Financial Review’s Robert Harley reports that commercial real estate finance is rapidly changing and will create new challenges and opportunities.

Our CEO Michael Wood spoke with reporter, Robert Harley about the risks and rewards for investors in CRE finance. He has warned investors are not focused enough on what he calls “classic late-cycle mispricing of risk”.

He also goes on to explain that asset management is critical in non-bank lending and not being across your loan book has the potential to cause problems.

At Madigan, we believe it is important to be mindful of the responsibility connected to managing the capital of institutional investors and focus on securing investments that align with sound values and deliver sustainable long-term returns for our partners.

We are very conscious of moving from current peak asset pricing into a rising interest rate environment, and the impact that can have on certain sectors and asset values.

Michael Wood, CEO