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...assets with shaky valuations....
...Signa Holding, the company at the centre of the Austrian property network, filed for administration on Wednesday....
...The management of Signa Prime and Signa Development — and the insolvency advisers engaged to oversee the self-administration process — did not respond to requests for comment....
...A shortage of properties for sale has also helped to prop up valuations and real prices across the OECD returned to growth in the latest quarter....
...The UK market tends to be quicker to write down valuations, meaning a quicker adjustment to the new normal....
...Signa, which piled up billions of euros in debt, disintegrated under rising interest rates, falling property valuations and lenders’ increasing reluctance to refinance loans....
...England raising interest rates from 0.1 per cent at the end of 2021 to 5.25 per cent last summer in a bid to tame inflation, “affordability in London has deteriorated more than elsewhere because already valuations...
...The property groups said the changes have an immediate impact because the tax that a buyer would have to pay on an eventual property sale factors into their current valuations and plans for development and...
...US property exposure is the glaring concern. PBB’s shares have more than halved in the past year. Valuations for US offices have tumbled and vacancy rates are hovering around 20 per cent....
...Blackstone’s president Jonathan Gray has also said he believes property valuations are beginning to bottom. “We really see real estate bottoming from a valuation standpoint,” he told the FT in January....
...The placing comes as commercial property investors start to hunt for deals following a steep fall in real estate valuations brought on by rising interest rates....
...IWG would add to the growing list of companies quitting the London market in search of higher valuations and great liquidity abroad, particularly in the US....
...a ‘Red Book’ valuation....
...Kiran Raichura, property economist at Capital Economics, projects a peak-to-trough price decline across property types of about 20 per cent....
...Expect these companies’ valuations to improve as the value of their real estate holdings rises....
...Blackstone president Jonathan Gray has said he expects property valuations to soon hit bottom as real estate markets absorb the impact of higher rates....
...Signa’s bullish valuations hinged on the rental incomes its properties could command....
...Under Benko’s direction, the group honed a modus operandi of buying unloved but high-potential properties in city centres, redeveloping them, inviting in ultra-luxury tenants, and then giving them high valuations...
...Kroll, which has been involved as an adviser in relation to Signature’s assets post-administration, did not immediately respond to a request for comment....
...Since acquiring the property for €60mn in 2010, Signa had more than doubled the valuation to €160mn by 2021, helped by a booming property market....
...KaDeWe, Germany’s most famous and exclusive department store, filed for administration on Monday, becoming the latest casualty of René Benko’s crumbling property empire....
...German property is in a pickle....
...The bill could soon come due for mortgages on commercial properties whose valuations have taken a dive since Covid-19....
...the latter fell into administration....
...While Halifax attributed the December increase to a shortage of properties on sale, the house price and PMI figures add to evidence that the property market is improving as mortgage rates fall and builders...
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