Why Sweden’s $41 Billion of Property Debt Is Alarming Europe
- Dramatic fall in the value of the country’s property companies
- Regulator has warned of threat to financial stability
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Even in Sweden few people knew much about Castellum AB. Yet the hurried sale of 40 million shares in the property company earlier this month is now seen by some as a harbinger of things to come in the European property market.
The seller, M2 Asset Management AB, cited falling market prices that affected its “ability to fulfill its financial commitments” for the decision. The dumping of the stake by a major shareholder, is just the latest episode in a tumultuous year in which Sweden’s property companies have seen their stock market values halve.