UK property investors wary of distressed assets
Tuesday, April 07, 2009
Source: Reuters
Reuters reports: European property stocks are rallying but some leading property investors are wary of storming back into the crisis-hit market for bricks and mortar, because they fear prices may still have further to fall.
Delegates at IMN's European Distressed Real Estate Symposium said investors would become more confident about pumping money back into the sector as soon as a broadly expected flurry of fire sales begins.
"We are starting to get bullish because the only way is up," said Daniel Fasulo, managing director of research at Real Capital Analytics (RCA).
"Sellers are reluctant to capitulate and accept the reality of where pricing is, but 2009 will be about distressed sales."
RCA has tracked some 16 billion euros ($21.65 billion) worth of European commercial property sales in the first quarter of 2009, down 78 percent from 75 billion euros in Q1 of 2007.
"As more distressed assets change hands we will get a better idea of where the pricing is, but the window to pick up assets at stupid prices will be very short -- six months at most," Fasulo warned.
View the full article on Reuters: UK property investors wary of distressed assets
Posted by: Nina Turner