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Banks "speeding up commercial property sales"
Commercial property sales are being processed at a faster rate in the UK, by banks and creditors keen to get rid of distressed assets.
This is according to the Wall Street Journal, which warns this does not necessarily mean they will come across cheap business properties.
The reason behind the fast-paced sales may be partly due to fears that prices could cease to rise in the way they have recently been doing.
And assets are also being sold by lenders in order to guard against the effects of this change.
Figures from Property Data suggest there have been 64 deals made so far in 2010 including a bank or receiver, which add up to some £1.71 billion.
This is particularly interesting when compared with statistics from last year, as the total amount of deals for the entire twelve months reaches £1.91 billion, the publication notes.
Legal and General Property is just one of the organisations that has purchased bank-related transactions and managing director Bill Hughes was quoted as saying: "The scale of the deleveraging task facing the banks is huge.
"With their teams now in place, plus growing awareness over potential future occupier weakness, banks do have to move forward and start to make progress," he continues.
Examples of commercial property sales that have been carried out in the UK include the Cumberland Hotel in London - bought from the Royal Bank of Scotland by Starwood Capital Group for £215 million.
And Lloyds Banking Group - which had lent funds to Glebe Holdings for the Central Cross office block - forced a sale of the business property, which generated £146 million when purchased by Derwent London.
Current trends may well continue, as Bart Gysens, a Morgan Stanley analyst, was quoted by the publication as cautioning: "There is still a lot of debt that needs to be taken out of UK commercial property."
The article follows the release of Savills' Total Commercial Development Activity Index, which found the outlook for this sector has turned negative for the first time in 12 months.
Posted by Tom Baker
This is according to the Wall Street Journal, which warns this does not necessarily mean they will come across cheap business properties.
The reason behind the fast-paced sales may be partly due to fears that prices could cease to rise in the way they have recently been doing.
And assets are also being sold by lenders in order to guard against the effects of this change.
Figures from Property Data suggest there have been 64 deals made so far in 2010 including a bank or receiver, which add up to some £1.71 billion.
This is particularly interesting when compared with statistics from last year, as the total amount of deals for the entire twelve months reaches £1.91 billion, the publication notes.
Legal and General Property is just one of the organisations that has purchased bank-related transactions and managing director Bill Hughes was quoted as saying: "The scale of the deleveraging task facing the banks is huge.
"With their teams now in place, plus growing awareness over potential future occupier weakness, banks do have to move forward and start to make progress," he continues.
Examples of commercial property sales that have been carried out in the UK include the Cumberland Hotel in London - bought from the Royal Bank of Scotland by Starwood Capital Group for £215 million.
And Lloyds Banking Group - which had lent funds to Glebe Holdings for the Central Cross office block - forced a sale of the business property, which generated £146 million when purchased by Derwent London.
Current trends may well continue, as Bart Gysens, a Morgan Stanley analyst, was quoted by the publication as cautioning: "There is still a lot of debt that needs to be taken out of UK commercial property."
The article follows the release of Savills' Total Commercial Development Activity Index, which found the outlook for this sector has turned negative for the first time in 12 months.
Posted by Tom Baker
Wed, 11th Aug 2010