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Mall Values Plunge 60% After Reappraisals Triggered by Bad Debt

Mall Values Plunge 60% After Reappraisals Triggered by Bad Debt
businessoffashion.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businessoffashion.com Daily Mail and Mail on Sunday newspapers.

Mall values plunge 60 per cent after reappraisals triggered by bad debt

Mall values plunge 60 per cent after reappraisals triggered by bad debt
bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.

Private Equity Has $300 Billion for Pandemic-Hit Real Estate

(Bloomberg) Real-estate bosses at Blackstone Group Inc. quietly smiled when Britain’s biggest-selling tabloid unwittingly endorsed their largest European real estate deal since the pandemic.The Sun’s front page teased readers that foreign travel curbs meant they’d be splashing their cash at the much-maligned seaside town of Bognor Regis this year. Less than two weeks earlier, it had emerged Blackstone was in talks to spend about 900 million pounds ($1.3 billion) on a majority stake in the owner of Butlins, which has run a popular holiday park in the south-England town for 60 years.The private equity giant is leading cash-rich peers including Lone Star and KKR & Co. in preparing for a world beyond the pandemic as the rollout of vaccines hints at commercial properties stirring back to life. Buyout firms’ global real estate funds are now sitting on more than $300 billion of unspent cash, according to Preqin data.“There is a lot of money on the sid

U S mall values plunge 60% after reappraisals triggered by bad debt

From Bloomberg: About $4 billion in value was erased in 2020 from 118 retail-anchored properties with commercial mortgage-backed securities debt after reappraisals triggered by payment delinquencies, defaults or foreclosures, according to data compiled by Bloomberg. That average drop which reflects the change in value since the debt was originated years ago may underestimate losses when the properties come up for sale because so much retail real estate is in distress.

Mall Values Plunge 60% After Reappraisals Due to Bad Debt

About $4 billion in value was erased from 118 retail-anchored properties with CMBS debt after reappraisals. Bloomberg | Mar 01, 2021 (Bloomberg) U.S. mall values plunged an average 60% after appraisals in 2020, a sign of more pain to come for retail properties even as the economy emerges from pandemic-enforced lockdowns. About $4 billion in value was erased from 118 retail-anchored properties with commercial mortgage-backed securities debt after reappraisals triggered by payment delinquencies, defaults or foreclosures, according to data compiled by Bloomberg. That average drop which reflects the change in value since the debt was originated years ago may underestimate losses when the properties come up for sale because so much retail real estate is in distress. And few buyers are willing to take risks on aging shopping centers as e-commerce continues to grab market share.

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