Investors, business and government must be prepared to write off a further EUR 37 bn on their Dutch commercial property investments, civil engineering group Arcadis said in Dutch newspaper Trouw on Tuesday.
Investors, business and government must be prepared to write off a further EUR 37 bn on their Dutch commercial property investments, civil engineering group Arcadis said in Dutch newspaper Trouw on Tuesday.
In total, the Netherlands' offices, schools, retail outlets and hospitals are worth some EUR 254 bn, nearly EUR 46 bn below official valuations, Arcadis said.
The company bases this claim on an analysis of new valuations made when a property owner appeals against local real estate taxes.
Property owners have only written off 20% of the over-valuations so far and must still shed EUR 37 bn to make their books reflect the true value of their property portfolios, Arcadis said.
Dutch banks have some EUR 80 bn in commercial property loans outstanding. Figures on which proportion of these are at risk or impaired are not available, according to the Dutch association of banks.
