UK real estate faces challenge
UK commercial real estate has been in focus in recent months as worries have mounted over the potential impact of the UK’s vote to quit the European Union.
The sector is particularly vulnerable to a shift in sentiment among German pf and brief banks which have played a major role in prime CRE as UK banks have stepped back post-crisis in a bid to deleverage.
“There is a weaker financing market and the buyers who are here today are the ones to buy at a discount,” said an investor.
“ If you perceive it as riskier, you’re going to pull back and perhaps take a wait and see attitude,” said Andrea Daniels, associate managing director of CMBS at Moody.