1539Finance and Accountancy Briefings

Finance and Accountancy Briefing

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Finance & Corporate Real Estate – Executive Summary

Overview

The Government Spending Review in October outlined the biggest UK spending cuts for decades, totalling £81bn. Individuals and businesses are cautious about where they are investing their money. Property is a major investment sector and historically has been viewed as being relatively secure in the long-term. To put it into context, “The commercial property sector contributes a significant amount to the economy, employing millions of people and contributing over £45bn to the Exchequer.”

The recession is deep, with the possibility of a double dip and with economies across the globe fighting to recover; the outlook remains uncertain. It has been claimed by the Chancellor George Osborne that the UK credit rating was under threat and that cuts had to be deep and immediate. The jury is out on whether the Government’s strategy will pay off and the cuts will stimulate confidence in the UK as a good place to invest, or will backfire, deepening the recession.

Debt within the property market is a major issue, “JP Morgan analyst Harm Meijer estimates that the loan-to-value ratio of the entire UK commercial property investment market is around 100% - the debt secured on commercial property of £250bn is roughly equivalent to its value.”

This article includes information on;
- The role of the banks
- Commercial property pressures rise at european banks
- Debt within the property sector
- Refinancing loans
- Government spending cuts
- Empty property tax
- REITs
- Asset protection scheme
- The future of the market

To read this white paper in full, please download this briefing.

Tags: Tax, Debt, Bank loans, Loans, Property, Estate Planning, REITs, Assets.

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