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Debt crunch: Real estate investors bet more homeowners will sell as they scramble to refinance loans in the face of lower valuations
Listed commercial landlords in London are looking for bargains as high debts force landlords to sell.
Real estate investors are betting that more homeowners will sell as they scramble to refinance loans in the face of lower valuations.
Warehouse owner Segro yesterday raised £900m to snap up cheap properties.
The property investment trust raised the rise from £800m due to strong demand from investors to take advantage of “potential acquisition opportunities”, saying asset values have started to bottom out.
Segro chief executive David Sleath said: “We expect more exciting opportunities to arise in the coming months.”
And owner Derwent London said this year and next “will present interesting acquisition opportunities for well-capitalized investors.”
London’s office investment market has been hit by inflation. “The number of refinances is increasing, and many borrowers face higher debt costs and an equity gap,” he said.