Corporate finance experts Close brothers have warned that commercial property could cause ANOTHER credit crunch. Banking institutions and investors face the prospect of a 140 billion pounds fall in values as well as a 125 billion debt refinancing bill.
The banks have lent heavily against commercial property in recent years as yields and values rose exponentially. Now these are in free fall the banks could be exposed to over 250 billion pounds worth of commercial property debt.
The company also warned that this danger had yet to be “fully appreciated” by the parties involved.
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