Pursuits
Banks May Not Refinance $156 Billion of U.K. Property Loans
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U.K. commercial real estate investors may be unable to refinance about half of their 201.3 billion pounds ($315 billion) of outstanding bank loans amid tightened credit, according to a study by De Montfort University.
About 85 billion pounds to 114 billion pounds “could not be refinanced on current market terms,” according to a June survey of lenders by the university near Leicester, England. The loans are too high compared with collateral property values. About 24 percent were worth more than the real estate backing them, it said.