Swiss private equity firm Corestate Capital is teaming up with the Real Estate Management Institute (REMI) of Germany's EBS University to launch a new research platform on distressed real estate debt aimed at helping corporates to cope with 'the imminent financing freeze'.

'Banks have severely cut back on credit financings and focus, if any, on low-risk lending. This trend is set to accelerate further and will lead to a sharp increase of non-performing real estate assets. Banks are not capable of covering financing demand due to the capital requirements they are facing,' said Ralph Winter, founder and chairman of Corestate Capital.

'The main aim of our research cooperation is to analyse the upcoming wave of distressed real estate debt and to provide transparency which will help the real estate industry cope with the greatest financial crisis since World War II.'

It is estimated that around EUR 500 bn of European commercial real estate mortgages are due to mature over the next four years, with some EUR 125 bn in Germany alone. The 'Distressed Real Estate Debt' research cooperation will analyse the parameters of the market for distressed real estate assets and non-performing loans, to predict future developments, and to investigate the problems emerging on the ground, according to Prof. Nico B. Rottke, founder and head of the Real Estate Management Institute at EBS.