Private-equity firms, pension funds
and insurers face dwindling returns on loans to the UK
commercial property market as competition intensifies from banks
that shunned the business after the financial crisis.
A new lender has entered the market almost every week in
the past year in search of higher returns as gilt yields neared
record lows, according to brokers Savills Plc. (SVS) The UK banking
industry avoided the market following the collapse of Lehman
Brothers Holdings Inc. in September 2008 because of regulatory
requirements to meet stricter capital rules.
Greater competition on commercial-property loans has