European property markets are at a near standstill over coronavirus

Retailers worry about rent payments and deals are put on hold

TRD New York TRD 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)

Movie theaters might not come back after all

Movie theaters might not come back after all
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jamie Dimon and 383 Madison Avenue (Getty, Google Maps)

JPMorgan suffers setback in return to office

JPMorgan suffers setback in return to office
Lennar's Stuart Miller, Rick Beckwitt and Jon Jaffe (Lennar; iStock)

Lennar reports untempered demand for new homes in Q3

Lennar reports untempered demand for new homes in Q3
A lawsuit seeks to dismantle Gov, Andrew Cuomo’s midnight food curfew by arguing coronavirus is not a vampire (Getty; iStock)

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire
U.S. foreclosure filings in August jumped 11% as some states ended relief measures, though continued government intervention has prevented sharper increase (iStock)

US foreclosure filings jump as some states end relief measures

US foreclosure filings jump as some states end relief measures
Singapore (iStock)

Singapore’s housing market storms back

Singapore’s housing market storms back
Century  21 will wind down operations at its 13 stores (Getty)

Century 21 Stores files for bankruptcy, blames insurers

Century 21 Stores files for bankruptcy, blames insurers
arrow_forward_ios

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

Loading...