US commercial property crash is set to deepen the pain elsewhere
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Distressed investors see an opportunity to buy troubled US real estate assets as the commercial property crash continues. Private equity firms have set aside $400 billion for property investment, with 64% targeted at North America. The fear is that a strong US bias will delay the work out of troubled loans and properties in other parts of the world. Almost $1 trillion of debt linked to commercial real estate will mature this year in the US, creating more options for buyers of distressed assets. The number of US banks at risk would exceed levels seen in the 2008 financial crisis if CRE values fell by only 20% from their peak. The overall pool of private equity capital for commercial real estate has shrunk by 26% globally. Banks in Germany update valuations of buildings they have financed less regularly than peers in the US. European Banking Authority chair Jose Manuel Campa expects a further increase in non-performing loans.

#UsCommercialProperty #DistressedInvestors #PrivateEquity #RealEstateAssets #CommercialRealEstate #UsBanks #GlobalEconomy

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