Real Estate DebtConference 2025 – Conference Report

2 Days
5 Main Topics
26 Sponsors
40+ Speakers

The Real Estate DebtConference is one of the leading European events dedicated to indirect real estate debt investments. It was hosted by the FondsForum platform and PIA Pontis Institutional Advisors on 11/12 September 2025 at the Hilton Frankfurt City Centre. Bringing together about 100 participants and over 40 distinguished speakers, the conference featured a dynamic lineup of keynote presentations, panel discussions and expert interviews. The conference moved beyond the boundaries of its original focus on the European market and has steadily expanded, including North America and Asia in recent years. Especially the GP/LP ratio of around 70/30 confirms the quality of the conference and its attendees.

Pre-Event Dinner and networking:

This year’s conference opened in traditional fashion with the Pre-Event Dinner at Restaurant Schönemann, the culinary heart of Frankfurt at the Opernplatz. This exclusive evening provided only for investors and sponsor representatives with the ideal setting to connect in a welcoming atmosphere and expand your networks ahead of the official program.

Day 1:

The conference opened with a warm welcome from Oliver Strumpf, founder of the FondsForum-Platform and David Rueckel, founder and managing partner of PIA Pontis Institutional Advisors. As the chairman of the conference David outlined key figures for the real estate debt market that set the stage for the sessions to come: despite challenging conditions, private debt market volume has grownsignificantly over the last decade, with CRE debt AuM up 380% from 2010 to 2024. Growth is expected to continue. Despite higher interest rates and challenges in the German market investors expect to increase overall allocations, with 40% wanting to increase their real estate debt allocation over the next 10–20 years, reflecting the importance of the asset class.

General market overview / macro economy

• The agenda commenced with a comprehensive introduction of the macro economy as well as a general market overview. Lower inflation and weakening job market data are expected to reduce reference rates by 100 bps in the next 12 months. Policy and geopolitical uncertainty remain high and trade tensions, including higher tariffs and a shift away from Chinese imports, are on the radar. Industrial activity in Europe is stabilizing and European and especially German economic data are looking more positive than expected. The “big experiment in the US” is adding pressure on government debt and hence it is expected that even with lower rates, treasuries will remain stable around the 4% mark.
   
• Short-term policy rates in Europe appear to be entering a moderate easing cycle, while long maturities remain more volatile as term premia reprices, helped by pension reform flows and the ECB balance sheet runoff. Slowing inflation is continuing but US tariffs could lead to temporarily higher inflation.
   
• Real estate valuations look more grounded and many markets are signaling a floor. In the short term, opportunities are stronger in Europe, while the US retains stronger long-term fundamentals. Demand in logistics and residential continues to hold up, with 2025–2028 rental growth forecasts of 15% and 11% respectively, and refurbishment rather than new builds underpins fundamentals.
   
• Lastly, a board member of a German insurance company offered his perspective. Institutions are adding to private debt; in demand are diversified infrastructure and real estate financings with stable cash flows and a strict risk framework, with a preference for current income over development. Corporate private debt will also see further allocations.
   

Risk transfer / managing risk

• The focus then shifted to risk transfer, where different approaches to leverage were discussed. Although, especially in Germany and Europe, there is a bad perception that leverage is inherently negative, the opening presentation showed its potential when appropriately structured. Debt-side leverage can be accretive, increasing returns, when terms are matched, collateral is solid and control is clear.
   
• The linkages between traditional and private lenders are tightening and A-notes offer control and genuinely term-matched financing. Warehouse lines are fast and scalable but often introduce recourse elements and mismatches in duration and the risk of margin calls. Still, when managed correctly, they can be highly effective tools. CLOs provide non-recourse, term-matched financing but require scale and active management.
   
• The last panel on this topic provided insights on managing risk, where strong covenants act as early warning and cash-trap mechanics support deleveraging. In addition, local presence and robust lender protections are essential throughout the debt cycle.
   

International risks & returns – Europe, Asia, US

• The last agenda section of the first day started with a keynote on Transatlantic Relations and financial market regulations from a former Supervisory Board member of the ECB & former Board member of the Deutsche Bundesbank. Post GFC regulations shifted much of the higher risk and high-touch lending away from banks towards private lenders. Germany’s market is normalizing after cheap-money excesses and possibly needed this correction. Despite a healthy market, the interview painted a concerning picture of Europe with hope around Germany’s new Chancellor Merz being a central figure for European unity, also towards the US.
   
• The US lending market has a constructive tone. Refinancings and amend-and-extend transactions happen. These are pushing the maturity wall outward and easing short-term pressure. Construction lending remains a very attractive field for investors, with higher equity requirements and tighter contingencies providing interesting risk-return profiles.
   
• Various case studies illustrated regional differences across Europe, the US, and Asia. Together with a TED survey, they showed that Asia, particularly Australia, offers very attractive risk return profiles. Also, lending on US office opportunities and office-to-residential conversion is happening and can be attractive.
   
• The last topic on the first day was on global real estate debt strategies, in which a panel provided insights on globally diversified funds. The emergence of global funds is strengthening cross-border relationships and accelerating technology adoption.

Day 2:

Lessons learned: Europe with focus German market view

• The second day of the conference started with an interactive presentation in which the audience collectively described their view of the European real estate debt market. The conclusion was that it is broadly healthy, supported by a deep lender and capital base but has gone through a shake-up especially in Germany. This reset is providing more healthy conditions. In addition, the next phase of repricing will be driven by refinancings and non-performing loans, with private lenders playing an increasingly central role.
   
• The discussion then shifted to a panel where market participants shared their lessons learned. From a German perspective, investor capital is cautious and banks are pulling back while private debt lenders fill the gaps. Across Europe, sponsor quality and operating capabilities matter more. On the legal side, the emphasis was on robust intercreditor agreements and avoiding lender asset management roles.
   

Outlook

• Before the official start of the final section of the agenda, a mentalist offered a brief interlude exploring the subtleties of human perception and decision-making.
   
• The final interview indicated that data centers will remain a focus and are an interesting market for lenders also for long-term financing. The relative attractiveness of new originations and secondaries has leveled. Spreads remain attractive, but competition will test alpha.
   
• ESG was also part of the agenda, where it belongs, as ESG is not dead but more pragmatic. It is shifting away from labels toward real performance, enforceable loan terms and KPIs with measurable outcomes. In the US it might just be labeled differently but managers are still largely committed to its importance, understanding it helps asset values.
   
• The conference concluded with an investor panel that offered a outlook on sentiment. The tone is constructive, and year-to-date experience in real estate debt has been positive. Investors are confident about further deployment with new entrants in the market.

Outlook and conclusion

The DebtConference finished with a shared lunch and an engaging final exchange of perspectives. Overall sentiment toward the real estate debt market was positive, although still muted as it relates to new capital raising, given the challenges still in some markets in Europe, especially Germany, and forbearance and extensions are shifting the recycling of capital back. Perspectives on the US remain cautious, shaped by the policy agenda of the Trump administration, while Europe continues to be a core market for German investors, with many also turning their gaze to Asia. Despite policy rates remaining elevated, rate cuts are expected and real estate debt, and private debt overall, remain important parts of institutional portfolios. In sum, optimism prevailed; participants now look ahead to developments over the coming years.

We would like to thank all sponsors and speakers for their great support, professional contributions, and valuable insights, which made this conference possible. A full overview of all partners, video statements from participants, and conference impressions can be found at www.debtconference.com.

Save the Date
DebtConference 2025: 17/18 September 2026, Frankfurt

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