 "real estate")
Lease rental discounting (LRD) rates — the rate at which commercial property developers borrow loans using rental receipts from lease contracts as collateral — have touched a decade low of 6.5 per cent and below, thanks to excess liquidity with banks that faced difficulty in deploying credit during the Covid-19 pandemic.
Overall, the rates for LRD have fallen up to 200 basis points in the past 18-24 months. For the first time in many years, they have fallen below the capitalisation (cap) rate in the country, said investment bankers and real estate fund managers. The cap rate shows the potential rate
