EU COMMERCIAL PROPERTY

Very interesting article in FT about Commercial Real state in Europe :

“European commercial property owners face debt time-bomb”:

“European commercial property owners face a wave of complex debt refinancings and restructurings that pose a threat to the sector, according to bankers and industry groups.

There is mounting concern among industry professionals about how to restructure or refinance the $2,100bn of European commercial property loans, in particular the $200bn in CMBS.

Close to £43bn of loans to the commercial property sector are due for repayment this year alone, according to De Montfort University research.

Half of the outstanding European CMBS market needs to be repaid in 2011 and 2012, and CMBS in default have already proved difficult to restructure”.

Maybe, Eurozone is even in worse shape that US. So much for a strong € !!!