For banks and other holders of commercial real estate loans where the asset or the capital structure no longer works. Dry Capital re-underwrites the asset with a local team, agrees a business plan with the lender and finds the route to a liquidity solution for the position.
Loans written between 2019 and 2022 are reaching maturity in a market where values are lower and money costs more. Positions that still perform today have to be looked at now, while the options are still open.
European debt funding gap for loans maturing 2026 to 2028: refinancing that today's values and lending terms will not cover, with most of it falling in 2026. Office loans make up 41%.
ECB deposit rate after the second increase of 2026, on 10 September, with a further step priced for October.
Ten-year Bund, its highest since 2009, with the five-year euro swap at the same level.
A loan can keep paying while the position behind it weakens. Acting early keeps more options open.
The lender, the owner, capital and the local team each hold one part of the answer. S²WAP puts them around one plan.
Holds the loan and needs a plan it can approve.
Needs a plan that makes further investment worthwhile.
Assess the position against a revised business plan before they commit.
Dry Capital works with asset and development management partners in Benelux, Spain, the United Kingdom and France.
One agreed plan per asset, with the lender, the owner, the capital and the local team around it.
Re-underwrites on the ground, then runs the business plan.
Decides its position under the agreed plan.
Set by the re-underwritten position and the agreed plan.
Brings in the new equity at today's value, against the agreed plan.
Lenders and other holders of real estate positions engage S²WAP at different stages of stress.
Watchlist loans ahead of a maturity, a covenant test or a revaluation.
Positions that need a revised asset and capital plan.
An asset holding back a vehicle under redemption or extension pressure.
An asset where the business plan or the capital structure no longer works.
Dry Capital leads every file from Brussels and works with a local asset management partner in each market where a file sits.
Who runs Dry Capital, the track record and how to reach us are on the main site.