Distressed commercial real estate debt: Still waiting for the big bargains

The vast market in distressed commercial real estate debt expected at the end of 2008 has yet to materialize not least because banks have been unwilling to offload their holdings. Potential investors are still in line for bargains. Phil Moore reports.

More on real estate debt

As recently as the final quarter of last year, the immediate outlook for investors in commercial real estate debt looked much more promising than it does today. In November, London-based Cairn Capital announced the imminent launch of its first commercial real estate fund, which would seek to take advantage of the “unprecedented opportunities currently being offered in the commercial real estate debt market”.

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It is easy to see why Cairn and scores of others were upbeat about the prospects for the real estate debt market.

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