A resilient year in UK & European CRE lending

As we close out the year, the UK and European commercial real estate lending markets continue to demonstrate resilience amidst ongoing macroeconomic and capital market adjustments. Following the successful completion of our management buy-out in 2024, Westfort Advisors has gone from strength to strength, executing a broad range of transactions across the CRE debt space.

A Year of Active Refinancing & Capital Solutions

2025 has been a busy year for Westfort, with a significant focus on more complex or challenging refinancings requiring capital solutions across a wide spectrum of bank and non-bank lenders. Notable transactions include:

Renewed Momentum in Acquisition Financing

Economic and geopolitical concerns weighed on H1 transaction volumes (down 18% on 2024, according to CBRE) – but investment levels varied across the market and we experienced an uplift in enquiries for office and logistics acquisitions – the two sectors bucking the trend.

Westfort arranged and structured a senior acquisition and refurbishment facility for a joint venture between Delin Property and Kuwait Financial Centre – Markaz in respect of a 200,000 sqft distribution hub in Kent.

Navigating Covenant Pressure & Restructuring

We have seen an increasing number of lenders applying pressure, where covenants may have been breached, and loans transitioning to specialist recovery/workout units. In these situations, Westfort works closely with both borrowers and incumbent lenders to navigate consensual resolutions.

Our work has included: 

• Negotiating standstill arrangements
• Securing loan extensions
• Restructuring loans to facilitate refinancing
• Achieve amicable exits for all stakeholders

Westfort advised on the restructure and refinance of a loan secured against a UK leisure asset. Amid a projected covenant breach and rising lender pressure, Westfort stabilised the situation, secured a loan extension and managed all lender dialogue. The outcome was a full refinance with a UK debt fund, including capex to complete the repositioning. The asset is expected to exceed £25m once works finish. This advisory-led approach continues to protect value while preserving long-term lender and borrower relationships.

Special Situations & Complex Capital Structures

Westfort continue to be active in the special situations and NPL markets. We acted as the sole advisor to a German fund on the acquisition of a portfolio of student accommodation assets in Germany, which sat within a complex non-performing loan structure.

After assessing a range of potential enforcement and refinancing routes, Westfort successfully: – Negotiated a discounted pay-off with the lender – Reached a consensual agreement with the sponsor – Mitigated clawback risk from a number of unpaid and unsecured creditors

This solution enabled the clean acquisition and orderly sale of the assets while protecting our client against legacy liability.

M&A Advisory Activity

In addition to our debt advisory work, Westfort has also been active in the M&A space;

We led the sale of a UK supported living business, Zero Three Care, from Montreux Capital Management (MCM) to Downing LLP. The transaction delivered an excellent commercial outcome for MCM but also ensured that ZTC, under Downing’s ownership, is well positioned to continue its mission of delivering outstanding specialist care services nationwide.

Looking Ahead to 2026

The outlook for 2026 is positive, with approximately £120m of transactions currently in closing, including:

We look forward to announcing these completions early in the New Year.

As always, we are grateful for the continued trust and support of our clients, partners, and lending relationships. We look forward to working with you in 2026 and beyond.

The Westfort Advisors Team