Debt - Appartement de Ville

17/05/202417/05/2024

South Korea Plans ‘Orderly Soft-Landing’ of Real Estate Debt

(Bloomberg) — South Korean authorities unveiled measures on Monday to support an “orderly soft landing” for real estate project-finance debt, as rising delinquencies in the sector threaten to be a drag on the economy.

The government will refine criteria used to evaluate the feasibility of real estate project finance sites, seeking to pinpoint which developments are no longer viable and should be sold off in a restructuring process, according to a joint statement by the nation’s Financial Services Commission and Financial Supervisory Service.

The country’s project finance debt is a potential threat for local financial markets and the economy, with economists at Citigroup Inc. estimating that 111 trillion won ($81 billion) of such borrowing is troubled. A debt restructuring by Korean builder Taeyoung Engineering & Construction Co. earlier this year rekindled memories of a default in 2022 by the developer of a Legoland amusement park that sent some corporate borrowing

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13/02/202413/02/2024

Sudbury news: Company with huge real estate holdings in the north has $144M in debt, files for CCAA protection

One of the largest owners of residential real estate in Ontario –with large holdings in northern Ontario – has filed for creditor protection after accumulating more than $144 million in debt.

The company would buy homes and apartment buildings, mainly in northern Ontario, renovate them and make a profit by renting them out at higher rates.

But rising interest rates ate up much of the cash that was supposed to be used for renovations, causing revenues to tank.

The group of companies, which filed for insolvency under the Companies’ Creditors Arrangement Act (CCAA), owns residential properties in Timmins, Sault Ste. Marie, Sudbury, Kirkland Lake, Capreol, Val Caron and Temiskaming Shores. The properties total 631 units – including single family homes and apartments — of which 424 are occupied.

Collectively known in court documents as “the company,” the group of

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17/08/202317/08/2023

Big Banks Are Trying to Dump Commercial Real Estate Debt As Pressure Mounts

Big banks are trying to dump commercial real estate loans as pressures mount in the sector.
JPMorgan, Goldman Sachs, and Capital One are among those trying to shed debt exposure, sources told Bloomberg.
Some banks are having trouble securing buyers, and have been holding onto loans as they search for a deal.

Big banks want to some of their commercial real estate loans, but buyers are proving scarce as troubles pile up in the sector, according to report out from Bloomberg this week.

JPMorgan, Goldman Sachs, Capital One, and M&T Bank are among firms trying to whittle down their commercial real debt holdings, sources familiar told Bloomberg this week, but have been struggling to find many interested buyers.

Banks could be willing to sell property loans

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22/05/202322/05/2023

Mortgage debt a ‘ticking time bomb’ and a market rebound: Canadian real estate news for May 20

This week in real estate, economists call Canada’s mortgage debt a ‘ticking time bomb’ and the market rebounds in April360hometours

Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.

Mortgage debt like a ‘ticking time bomb’

Economists are issuing a dark warning, writes David Parkinson. A report from economists at Desjardins Capital Markets says Canada’s mortgage debt is “a ticking time bomb” and that the pain for mortgage holders has barely started. The bulk of mortgages taken out during the pandemic, when rates were at their bottom, will hit renewal time in 2025 and 2026, when Desjardins forecasts homebuyers will face dramatic increases in their monthly payments.

Canadian housing market rebounds in April

The national home price index claimed

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05/05/2023

Billions of Dollars of Bad Real-Estate Debt Could Mean Big Bank Losses

Lenders, including major banks, are expanding their provisions to guard against loan losses.
The rapidly growing reserves reflect concerns about the health of commercial-real-estate debt.
The provisions put a drag on earnings, curtail lending, and could spur a cash crunch for some banks.

This earnings season, some major banks bucked tumult in the sector by raking in record revenues and surpassing Wall Street expectations.

But a blemish is building on the balance sheets of a growing number of financial institutions, in the form of cash reserves that banks and other lenders are required to collect against expected loan losses — including souring debts tied to commercial real estate.

The reserves, stagnant money that doesn’t earn a return, place a drag on earnings, curtail lending, and show how hundreds of billions of dollars of problem real-estate assets, such as office buildings, are beginning to inflict wider financial damage.

The US’s four

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