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11-04-2023, 04:48 PM
SUN, APR 09, 2023 - 04:23 PM
ALMOST US$1.5 trillion of US commercial real estate debt comes due for repayment before the end of 2025. The big question facing those borrowers is who’s going to lend to them?
“Refinancing risks are front and centre” for owners of properties from office buildings to stores and warehouses, Morgan Stanley (MS) analysts including James Egan wrote in a note in the past week. “The maturity wall here is front-loaded. So are the associated risks.”
The investment bank estimates office and retail property valuations could fall as much as 40 per cent from peak to trough, increasing the risk of defaults.
Adding to the headache, small and regional banks – the biggest source of credit to the industry last year – have been rocked by deposit outflows following the demise of Silicon Valley Bank, raising concerns that will crimp their ability to provide finance to borrowers.
https://www.businesstimes.com.sg/propert...properties
ALMOST US$1.5 trillion of US commercial real estate debt comes due for repayment before the end of 2025. The big question facing those borrowers is who’s going to lend to them?
“Refinancing risks are front and centre” for owners of properties from office buildings to stores and warehouses, Morgan Stanley (MS) analysts including James Egan wrote in a note in the past week. “The maturity wall here is front-loaded. So are the associated risks.”
The investment bank estimates office and retail property valuations could fall as much as 40 per cent from peak to trough, increasing the risk of defaults.
Adding to the headache, small and regional banks – the biggest source of credit to the industry last year – have been rocked by deposit outflows following the demise of Silicon Valley Bank, raising concerns that will crimp their ability to provide finance to borrowers.
https://www.businesstimes.com.sg/propert...properties
