French REIT/SIICs to lobby government on bank lending - sources

French REIT companies, via their representative association FSIF, are planning to lobby the government for assistance in ensuring that banks do not impose higher lending margins on the listed property sector to compensate for their exposure to distressed private real estate groups. Jean Paul Dumortier, president of the FSIF, confirmed to PFE/PIE he will head a delegation to lobby the government but said it is too early to provide details. However other French REIT/SIIC sources said problems with bank lending to private equity property firms has sparked deep worries in the listed segment. "Our concern is that the private equity market is going to implode because they've got disastrous deals everywhere; most are far more highly leveraged than we are, and don't have any cash-flow," one source said. "The other concern is that when our funding comes up, we won't be able to refund because the banks are losing so much on the other side of the carpet, they will try to whip us to make up on the margin."