According to CB Richard Ellis (CBRE), lending terms for prime European real estate improved towards the end of 2009 due to a rebound in commercial property prices and a positive shift in sector sentiment.

CBRE believes that banks appeared more willing to lend more money on prime commercial property at a greater loan-to-value (LTV) level at the end of December 2009, as margins had compressed.

Natale Giostra, head of UK and EMEA debt advisory at CBRE Real Estate Finance, said: "Key lending terms for prime real estate stock and credible tenants have improved significantly over the last couple of months.

"What is particularly worth noting is that this trend is not confined to the UK. We see a theme of consistency running throughout Europe."

Banks in the UK were willing to lend up to £75m on a single prime asset, with a maximum LTV of 70% and a margin of 1.85% above Libor, whilst French banks would lend up to €75m with a maximum LTV of 60%, at a margin of 1.8% over Euribor, the data showed.

Banks in Germany, Italy, the Netherlands and Spain were prepared to lend between €40-50m, with maximum LTVs of 60-70%. Germany and the Netherlands also had the lowest margins, at 1.4% and 1.5%, respectively, above Euribor, followed by Italy and Spain at 2% and 2.5% respectively.