Change font size:   

 
Euromoney Awards for Excellence 2009
Country risk 2010:

Country risk 2010:

Bi-annual Country risk survey monitoring political and economic stability of 186 countries

Liquid real estate Issue 05

Distressed funds dash to raise cash

by Rachel Wolcott

The number of so-called distressed and opportunistic funds has grown quickly on the back of the downturn in the property markets. Some believe these investors might be jumping the gun, as truly distressed properties remain few and far between. Market observers say the amount of cash being raised could far exceed the number of opportunities.




Pierre Rolin, Stratreal: double whammy ahead

"To me, distressed means properties where the banks have pulled the rug on someone and it’s vacant, or in development and the builder hasn’t been paid," says Michael Cutteridge, director of DTZ’s capital markets team in London. "I don’t think we’ve gotten to that point yet. It’s more the case of buying good properties at better pricing and there being fewer people in the market."

This is a point underscored by Nick Burnell, managing partner at Rutley Capital Management in London. Although prices have come down, they haven’t come down to distressed levels. "No one knows what the volumes of opportunities will be," he says. "It could be that the money coming in will underpin the market. I’m not sure this is an environment where people will make lots of money."...


Please log in now to view.
Enter your username (email address) and password at the top right-hand side of euromoney.com.

If you do not currently have access to this content, visit the subscription page or call our hotline on +44 (0)207 779 8999.

Subscribe online now and save up to 30%


Subscribe

Subscribers to Euromoney benefit from:

  • 12 months access in print and online - on euromoney.com, read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 1996 
  • More than 30 specialist research guides free
  • The results of Euromoney’s polls and surveys
  • Tailored RSS news feeds direct to your desktop
  • News delivered directly to your mobile device or PC
  • Personalised email newsfeed of 'Top stories' and 'Breaking news'

Click here to subscribe




Ruromoney Jobs Post a job