Debt squeeze: Property investors are betting more owners will sell up as they struggle to refinance loans against lower valuations
London-listed commercial landlords are eyeing bargains as high debts force owners to sell.
Property investors are betting more owners will sell up as they struggle to refinance loans against lower valuations.
Warehouse owner Segro yesterday raised £900million to snap up cheap property.
The real estate investment trust increased the raise from £800million due to strong demand from investors to take advantage of ‘potential acquisition opportunities’, saying asset values have started to bottom out.
Segro chief executive David Sleath said: ‘We expect further exciting opportunities to emerge in the coming months.’
And landlord Derwent London said this year and next will ‘present interesting acquisition opportunities for well-capitalised investors’.
The London office investment market has been hit by inflation. ‘The number of refinancings is gathering pace, with many borrowers facing increased debt costs and an equity gap,’ it said.
