Western Europe: No break in sight for real estate borrowers

Long-term hedging put in place before 2007 has become an extremely expensive problem for banks looking to sell down their real estate exposure.

As London’s glut of commercial real estate balloons following the addition of 585,000 square feet of unlet office space in The Shard this month, the full implication of all these empty desks is being felt at addresses across the UK capital. One such address is Citypoint Tower, a 703,382 square foot building at One Ropemaker Street in the City of London that might soon be on the market if the collapse of a restructuring deal on its £429 million ($669 million) outstanding senior debt in late May leads to enforcement.

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