Lucy Scott
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.
The refinancing of the US manager's Kereby platform saw local lenders replace financing from an international bank.
As high-profile assets go up for sale, the sector’s yield profile is piquing the interests of debt-providers.
French bank cites potential problems for Aareal and pbb Deutsche Pfandbriefbank, although the latter strongly disputes the findings.
A continued pause in the UK property investment market is expected following the Bank of England’s latest interest rate rise, which will further impact affordability of loans.
Receiverships at Docklands office buildings in London suggest even prudent senior lenders will be impacted by problems in the office sector.