Providing loan valuations for your AIFMD accounting and strategic evaluation
The Loan Valuation team provides debt instrument valuations, which are secured against real estate assets. We provide real market indicators and transparent reporting to ensure new EU regulations for Alternative Investment Funds are fully complied with. In addition, with the increase in the secondary trade of loans, the team also provides strategic valuation advice for the acquisition and sale of loans.
Since the financial global crisis, financial regulations have increased with the likes of Basell III and Insolvency II taking greater prominence. In July 2013, the Alternative Investment Fund Managers Directive (“AIFMD”) went into force across Europe, with the main purpose being for Alternative Investment Funds to communicate and interact with their stakeholders in a more transparent manner. Part of the directive looks to address valuation concerns of a fund’s assets by requiring functionally independent valuations to be undertaken.
It has been normal practice for direct investment real estate funds to obtain external valuations however this directive also requires indirect real estate investment, such as Debt Funds, to value their assets with an emphasis on using fair value.
The emergence of AIFMD has resulted in JLL setting up a dedicated European Loan Valuation team to value loans across the capital structure, which are secured against real estate assets.
The Loan Valuation team has considerable experience in the real estate finance space and understands market participant return requirements to provide accurate valuations. With Loan Valuation situated in the Real Estate Valuation Advisory team, this allows for a full asset and loan credit review to be undertaken and pulls on the best in class property knowledge of the wider JLL business.
All this ensures that JLL European Loan Valuation will provide accurate and reliable valuations based on current transactional data for both strategic evaluation and accounting purposes.
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