Europe, Middle East & Africa
The great roller coaster ride which has been this recession in Europe has continued in the last few days with the spotlight turned on Ireland. At the time of writing, the Irish government has been ‘forced’ to accept a £77 billion ($123 billion) loan from the European Financial Stability Facility (EFSF) in a deal ultimately designed to save the Euro. The loan is to be coupled with further draconian budgetary and wage cuts which could lead to civil unrest in Ireland. This latest painful twist in the saga, which follows the £94.1 billion ($150 billion) Greek rescue, has provoked yet more bizarre reactions and worrying speculation. More >
Dubai was just a few years ago the buzz-worthy commercial property market on everyone’s lips. A member of the UAE, Dubai became synonymous with upper class through world-famous properties like the Burj Al Arab (the sail-shaped hotel) and the Palm Islands (man-made island chains in the shape of a palm tree). Developers quick to notice a market trend shifted focus to Dubai, with plans to open a mega-retail and entertainment center, the Dubai Global Village – replete with hotels, theater venues, shopping and much more to attract tourists from around the world with continent-specific venues. More >
There is new legislation afoot in Brussels which could mean that property companies have to “store” capital and this figure could amount to tens of billions of Euros. It is thought likely that property firms would have to put aside working capital on derivative swaps to reduce their risk levels when borrowing money for funding. More >
The Russian Real Estate market suffers from a solid reputation of being one of the least transparent and one of the most corrupt major markets in the world. This is even more remarkable if compared with the three other BRIC economies, which enjoy a much better image from overseas investors. More >
Two of Germany’s open end funds platforms, Aberdeen’s DEGI Europe and Morgan Stanley’s P2-Value, have decided after a two year closing period that they will close the funds and sell all of their buildings.
Most of the investors that have put money into those funds are institutional investors, large funds of funds, and are now under pressure from their investors to pay the money back. Because most of the money is in real estate assets and there is not that much liquidity left in the funds to repay the investors, management has decided to close the funds, collecting fresh money from new investors or selling some buildings to meet the request from investors who want to get out. More >