However, CBRE believes that the 11 percent reflects insufficient progress and point out that, from the current 926 billion euros of debt, about 143 billion of new debt created by the end of 2008. Therefore argue that since the end of 2008. solved around 244 billion or 24 percent of total debt.
Refinancing
Despite some progress in the debt in the commercial real estate sector, the short-term extension and refinancing of debt had a significant impact on the maturity of the loan. According to the data, 79 percent or 731 billion euros of debt to come due in the next five years. The CBRE claims that, although in the past 12 months govern better conditions in the credit market, the amount of debt repayments due largely outweighed the short-term credit facilities. new lenders, such as credit funds, insurance companies, private equity funds and capital markets are still in the development phase, and the market did not enter in sufficient largely to achieve greater impact. This, coupled with the fact that the securities insured commercial mortgage still being reissued, it means that the process of resolving the legacy of debt in the real estate sector continues to be gradual and depend largely opportunistic purchasers debts
End patience
Commenting on the report to the director of special services at CBRE in Paul Lewis said: "After a long period in which Europe dominated the strategy of patience and extension of deadlines, we have entered a period in which lenders are taking decisive steps to address non-performing loans in the real estate sector. For some time lasts deleveraging process, although it is mainly concentrated in the UK, where lenders reduce exposure by removing the barriers that have prevented them into selling real estate. However, many Eurozone banks continue to accumulation of unresolved debts and is becoming increasingly clear that, as long as no new lenders enter the market, many loans will not be solved until maturity. " director of research and consulting CBRE's EMEA Michael Haddock added: "There is no doubt that a large part solved by writing off debt and other provisions, but the process of deleveraging in Europe is uneven. As far as most of the commercial real estate problem has focused on northern Europe. On the other hand, in countries like Spain more problematic are loans issued in the residential sector. Taking into account the high investment activity in the commercial real estate sector in the second half of the 2013th recorded in the southern European countries could lead to surprising speed recovery of debts in the sector of commercial real estate debt and restore the normal frames.
Source: business.hr
Publisher: business.hr
