A move by Dubai's flagship conglomerate to sell some trophy properties could help turn the gears of a commercial real-estate market that has been stalled for more than a year.
Dubai World hasn't said specifically that it plans to unload real estate in order to raise cash to pay its debts. But in a statement detailing debt-restructuring plans early Tuesday, Dubai World said the restructuring process would include "assessment of delevering options, including asset sales." A Dubai World spokesman declined to comment on possible property sales. Dubai World owns high-profile properties around the world, including office buildings in New York and London and luxury hotels across the U.S.
Dubai's problems are coming to light as property investors navigate uncharted waters. Banks and troubled borrowers haven't flooded the market with cheap properties, even though rent and occupancy are still declining around the world, financing remains scarce and defaults are soaring. Lenders, hoping to avoid markdowns on their balance sheets, have largely shied away from foreclosing on overleveraged building owners. That has left investors thirsting for deals.
No comments:
Post a Comment