Thursday, Dec 27, 2007
Trying to refinance 7.1bn in this climate
Wall Street Journal: Credit Downturn Hits the Malls
The credit crunch triggered by the downturn in the housing market is creating problems in commercial real estate, driving down prices of office buildings, shopping malls and apartment complexes, and leaving some owners scrambling for cash.
One victim is Centro Properties Group, the fifth-largest owner of shopping centers in the U.S. The Australian real-estate company saw its share price fall by 90% in two days last week as it struggled to refinance short-term debt it took on to fund its $6.2 billion acquisition of New Plan Excel, one of the biggest owners of strip malls in the U.S.
Posted by lvmreader @ 09:21 PM (277 views) Add Comment
2 Comments
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1. alan said...
Well....did we all move our cash out of property funds into cash or gold bullion a few months back?
Good work Lvmreader.
2. uncle tom said...
If anyone wants to go short on a UK property company, I'd recommend Punch Taverns - loads of debt funded assets, a recession on the horizon, and clear evidence of poor management - by my reckoning, more likely than not to go bust in 2008...