The CRE Finance Council Europe and Ernst & Young released a joint European commercial real estate lending tax guide.
The guide is designed to assist market participants develop an understanding of the multiple issues they should consider when undertaking a transaction. It sets out common tax issues that prospective lenders should consider in their decision-making for lending to real estate investment structures. It also provides a template letter of instruction for lenders to allow them to seek appropriate professional advice on tax implications.
The document is intended for lenders, loan servicers, investors, restructuring advisors and participants in the European commercial real estate finance market.
"It is a historical reality that lenders have generally neglected to consider the full impact of tax in transactions they undertake," said Peter Denton, head of U.K. real estate finance at BNP Paribas and chairman of the CREFC Europe lender committee. "It is for all these reasons that CRE Finance Council Europe, in association with Ernst & Young, has developed a document that seeks to achieve the understanding that tax does matter." Ernst &Young is a member firm of the CREFC.