Lucy Scott
Heightened capital costs are increasing stress for real estate borrowers in the UK and Europe.
The ratings agency said many facilities were secured by overvalued property and had weak covenants.
Lenders will have ‘no choice’ but to enforce if these conversations do not start soon, according to restructuring specialists at accountancy PwC.
Speaking at the PERE Network Europe Forum, the CEO and CIO of the asset management giant said Europe’s debt funding crisis is about to intensify.
The CMBS special servicer will leave the valuation in draft form until the future of the asset’s key tenant is clearer.
The Bank of England has warned global falling property values could lead to losses for creditors, echoing concerns shared by the European Central Bank.
The vice-president of the European Central Bank said alternative debt providers are of greater concern than traditional lenders.
The manager says the additional capital provides it with £1.3bn in available capital.
German lenders including Deutsche Pfandbriefbank are seeing their share prices impacted by US commercial real estate exposure.
Expectations of 2024 rate cuts are already factored into base lending rates, according to market watchers.