Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Massive Commercial Property Deal Consigned To The Bin

Recommended Posts

http://business.timesonline.co.uk/tol/busi...icle1895836.ece

From Times Online
June 6, 2007
Vector pulls £2bn float after investor boycott
A last-ditch price cut failed to convince investors concerned about the role of management and the property market
James Rossiter and Dominic Walsh
Vector Hospitality, the company aiming to be the first hotel-based real estate investment trust, today pulled its flotation blaming market conditions, a day after cutting the price to below the bottom end of its orginal range.
...../
Vector was to be the UK’s largest property flotation this year raising up to £2.26 billion to buy flagship assets ranging from the Waldorf Hilton and Cumberland hotel in London to the Malmaison and Hotel du Vin chains.
Sources close to the deal told the Times:
"It is to do with market conditions. The market has softened today and it is fair to say that the property market has been softening for the whole period of the marketing and all that added up to a price the principals were not happy with."

GC2 is here folks!

Share this post


Link to post
Share on other sites

Bubble.

Pop.

http://icnewcastle.icnetwork.co.uk/0500bus...-name_page.html

Loans in breach or default rise steeply

Jun 6 2007

By The Journal

The value of commercial property loans in breach or default almost quadrupled in 2006, from £1.3bn to £4.5bn, according to a survey of bank lending. The survey estimated that outstanding loans to the sector amounted to between £200bn and £210bn at the end of that year.

The analysis, by De Montfort University, showed the value of loans in breach of their terms rose from £1.2bn to £4.2bn, and those in default rose from £69m to £324m.

But the survey also showed that loan-to-value ratios were tightening - down for prime office and retail from 82% to 79%.

Andrew Curry, an analyst at credit ratings agency Fitch in London, said: "For the first time, loan to values for prime assets have fallen.

"That could be for two reasons - either banks are getting more conservative or the market is starting to self-regulate.

Edited by OnlyMe

Share this post


Link to post
Share on other sites

A wise old property sage told me just before Great Crash 1 broke out that the most reliable lead indicator of a crash was the direction of commercial property. Big business gets out before the sheeple do.

Share this post


Link to post
Share on other sites
A wise old property sage told me just before Great Crash 1 broke out that the most reliable lead indicator of a crash was the direction of commercial property. Big business gets out before the sheeple do.

You only have to look at the amount of land being sold by Tesco, Asda and may other large landowner companies to see that they expect something to give soon!

Share this post


Link to post
Share on other sites
You only have to look at the amount of land being sold by Tesco, Asda and may other large landowner companies to see that they expect something to give soon!

Not to mention the banks selling their holdings and opting for leaseback schemes. People will look back on this (the banks selling up) in 2 years and say to themselves "how did they know what was coming" :rolleyes:

Share this post


Link to post
Share on other sites
Not to mention the banks selling their holdings and opting for leaseback schemes. People will look back on this (the banks selling up) in 2 years and say to themselves "how did they know what was coming" :rolleyes:

There was an article in the paper about 3 weeks ago about Tesco selling the land to their existing supermarkets and leasing them back. My mum asked me why they would do that - I explained that it's because they expect to be able to rebuy the land at a fraction of its present price in a few years time.

Share this post


Link to post
Share on other sites
There was an article in the paper about 3 weeks ago about Tesco selling the land to their existing supermarkets and leasing them back. My mum asked me why they would do that - I explained that it's because they expect to be able to rebuy the land at a fraction of its present price in a few years time.

Or even in a best-case scenario, they don't expect any small rises in value to outstrip returns they can make elsewhere in other investments. This is a huge vote of no-confidence in commercial property.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 351 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.