Foreign investors may auction off Dutch offices worth billions of euros as they take their losses in a troubled market, the Financieele Dagblad reports on Monday.
The paper says the pressure to sell will follow a wave of loan expiries with only limited options to refinance. Many office complexes are now worth less than the outstanding loan and prices are being further depressed by continuing high vacancy rates.
Uni-Invest, the paper points out, has been unable to sell a job lot of 200 Dutch offices even at a 40% discount. Its shareholders will vote on Tuesday whether or not to accept an offer from private equity houses Patrol Capital and TGP.
ABN Amro estimates investors have some €50bn in Dutch office property.
In particular, foreign investors are not keen to roll over debt, Nard Schuddenbeurs of property specialists Jones Lang LaSalle told the paper. ‘They would rather take their losses and are less concerned about the stability of the Dutch property market,’ he said.