UK property: debt maturities point to a looming financing gap
Anyone fooled twice proverbially must accept some blame. Investors trapped in illiquid British property funds should then expect little sympathy. Gates that descended during the financial crisis and post the Brexit vote slammed shut again during the recent pensions debacle. Locked-in shareholders, including pensions, must await liquidations to get their money back.
As forced sellers abound, fears of a commercial property fire sale are rising, the FT reported on Tuesday.
Property valuations already compressed by rising borrowing costs should suffer further. Public markets have reflected this pessimism. Real estate share prices have dropped about 40 per cent since the start of the year. Steep discounts to reported net asset values signal the risk that shareholders will need to open their purses to provide support.
This story originally appeared on: Financial Times - Author:Tax Cognition
