Frankfurt, the largest financial city in Europe, suffers from high interest and real estate deals (getty)
It’s a market European real estate Surrounded by offers amid a decline in purchases in light of the high interest and high prices that stifle buyers at a time when companies suffer from debt and are looking for liquidity.
According to a report by “Bloomberg” agency, today, Wednesday, the largest companies that own real estate in Europe tend to sell part of their real estate holdings to reduce their debts, but they were unable to obtain buyers due to High interest rates And fears about the future of the market.
The report indicates that a group of major companies in Europe, including the German “Fonvia”, the British “Land Security Group plc”, the French “Unibelle Rodamco” real estate holding company and the British “Westfield”, offered plans to sell a group of its assets in order to improve Its financial balances, but high inflation and interest hindered sales deals.
The British company “Land Seek” had announced a real estate sales plan worth 4 billion pounds sterling, which was revealed in 2020, while the company “URW” revealed a plan to get rid of real estate worth 4 billion euros, but so far it has only obtained deals. About 3.2 billion euros only.
And the German “Fonofia” company revealed plans to sell at least 13 billion euros of real estate assets it owned last August in an attempt to reduce debt levels that were worrying investors, but it has not yet succeeded in obtaining buyers, according to the data it announced. for the third quarter of the year.
According to Bloomberg data, no less than 23 billion euros ($24 billion) of assets owned by the largest real estate owners in the European continent have been announced for sale, but the real amount of assets offered for sale may be much higher than this mentioned value, as it does not include The number of companies that have not yet identified specific assets for sale.
Buyers are currently concerned about entering into new financial obligations, according to an analysis by “Bloomberg”, especially when real estate values are on the cusp of a significant decline that may reach two digits amid interest fluctuations that make debt expensive, which makes it difficult to find financing. for deals at a time when financial institutions are seeking to build up their cash flow.
In this regard, Thierry Podemoulin, CEO of Adler Group SA, said yesterday, Tuesday, that his company had failed to complete a series of planned real estate sales and therefore announced a debt restructuring deal, and added, “The real estate investment market is witnessing a complete freeze on deals.” …buyers are afraid of making losses.”
Real estate owners in Europe are facing major crises represented by the high borrowing costs, which began to hit the values of real estate assets and raise debt service, thus multiplying their financial crises.
The Adler company in Berlin was under severe pressure during the current year, which led to the collapse of the company’s shares and limited its options for refinancing, to the point that it had difficulty finding an auditor for it after KPMG resigned in May from auditing its accounts.