The value of UK commercial real estate debt in default or in breach of key lending agreements more than doubled to about £30 bn (EUR 33..15 bn) in the first six months of the year, according to a report in the Financial Times.
The value of UK commercial real estate debt in default or in breach of key lending agreements more than doubled to about £30 bn (EUR 33..15 bn) in the first six months of the year, according to a report in the Financial Times.
Banks have also extended or refinanced an extra £16bn in the first half of the year, rolling over maturing debt that could not be paid back by cash-strapped borrowers or restructuring loans when breaches were threatened owing to the steep fall in values.
According to De Montfort University, which compiles the most comprehensive study of the sector, the real estate sector accounts for £224 bn of outstanding debt. A survey by the university reveals that £43 bn of loans are due to mature this year and £32 bn are due for repayment in each of the next two years.
