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Q&A with Christian Janssen: CRE debt

Portabello Dock

Christian Janssen, Head of Debt, Europe, gives his view on why now is the right time for investors to engage in commercial real estate (CRE) debt in the UK.

What is CRE debt?

CRE debt is typically structured as a loan secured on commercial real estate. It offers income-focused returns through periodic interest (and principal) payments, culminating with the repayment of the remaining principal at maturity.

Why could investing in CRE debt be a good investment strategy?

Well-managed CRE debt provides performance protection through diversified, stable income streams. CRE debt benefits from a substantial degree of downside protection provided by the 'buffer' of the sponsor’s equity. While there is typically no additional upside to debt returns in a rising market, the sponsor’s equity will absorb the first loss in a falling market. In addition, contractually-agreed interest payments insulate the lender from the volatility of a changing rental income profile. As real estate market cycles become shorter and harder to predict, this insulation and degree of certainty is increasingly regarded as highly attractive by investors.

CRE Debt Q&A Download the full Q&A

Important Information: Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. TH Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”), the investment management arm of TIAA.

Christian Janssen

Christian Janssen

Head of European Debt

Christian's biography