European property markets are at a near standstill over coronavirus

Retailers worry about rent payments and deals are put on hold

New York Weekend Edition /
Mar.March 21, 2020 12:00 PM
Nantes, France (Photo by Estelle Ruiz/NurPhoto via Getty Images)

Nantes, France (Photo by Estelle Ruiz/NurPhoto via Getty Images)

European real estate markets have all but ground to a halt as the threat grows from the coronavirus COVID-19 pandemic.
The pandemic is impacting just about every sector in Europe, from retail to residential, according to Bloomberg.

Property sales are on hold across the continent and landlords are trying to assess which tenants will be able to make rent. There is about $12.7 billion frozen in British property funds because managers struggle to valuate assets.

Retailers including H&M, Superdry PLC, Burger King, and New Look have either asked for concessions from landlords or said they’d hold rent payments, according to Bloomberg.

Some malls have been forced to shutter as well, putting pressure on landlords like Unibail-Rodamco-Westfield. British retail landlord Intu Properties Plc has been forced to postpone a 1.3 billion pound capital raise.

While the European property market has been buoyed by cheap debt, investors worried about a European bubble even before the virus became a real threat in Europe.

Concerns over Brexit and the bubble prompted some investors to turn to other markets — for the first time in three years, foreign investors put more money into U.S. real estate than European real estate. [Bloomberg] – Dennis Lynch


Related Articles

arrow_forward_ios
(iStock, Illustration by Kevin Cifuentes for The Real Deal)
Office occupancy hits pandemic high
Office occupancy hits pandemic high
(iStock/Illustration by Steven Dilakian for The Real Deal)
Jobs report brings good news for real estate
Jobs report brings good news for real estate
(iStock)
Leisure and hospitality gain ground as 2022 opens in hiring boom
Leisure and hospitality gain ground as 2022 opens in hiring boom
(iStock)
Canada’s biggest city has just 3,200 homes for sale, an all-time low
Canada’s biggest city has just 3,200 homes for sale, an all-time low
Douglas Elliman sends NYC employees home as Omicron surges
Douglas Elliman sends NYC employees home as Omicron surges
Douglas Elliman sends NYC employees home as Omicron surges
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
Rockefellers to launch branded real estate venture in southern Spain
Christian A. Rockefeller to launch branded real estate venture in southern Spain
Christian A. Rockefeller to launch branded real estate venture in southern Spain
John Paulson with Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort (Condado Vanderbilt, Marriott)
Billionaire John Paulson wants to sell two Puerto Rico hotels as market rebounds
Billionaire John Paulson wants to sell two Puerto Rico hotels as market rebounds
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...