Welcome to the February 2019 edition of the Addleshaw Goddard Real Estate Finance Update.
In this edition at page one we take a look at the growth of the 'green finance' market, in particular the significant growth in 'green loans' that has occurred over the last year and is forecast to continue throughout 2019 and beyond. Amongst other points of discussion, we consider the drivers behind this growth, the impact of the LMA's 'Green Loan Principles' and the potential benefits to lenders and borrowers alike in entering into socially and environmentally responsible activities. Click here to read the article.
At page three we examine the new lease accounting standard IFRS 16 that applies to financial reporting periods beginning on or after 1 January 2019 by considering how the changes to the accounting treatment of leases may affect the terms of loan agreements and what action can and should be taken to commercially manage the consequences. Click here to read the article.
At page five we provide a brief summary of the key budget announcements relevant to the real estate finance market and what impact these might have in the coming months. Click here to read the article.
Finally, at page seven we set-out and review the legal concept of implied 'good faith' in commercial contracts where there is a contractual discretion, known as the 'Braganza duty', in light of the recent case of UBS AG v Rose Capital Venture Ltd and others where the High Court was asked to consider whether such a duty could and should be implied into the terms of a mortgage agreement. Click here to read the article.
We do hope these articles are of interest – do not hesitate to contact any of the team if you would like to discuss (see page nine onwards) or if there are topics which you would like us to address in future editions.