06/16/2021 | News release | Distributed by Public on 06/16/2021 05:14
Vaccine programs are expanding over Europe, lockdown restrictions are fluctuating, and the opening match of EURO 2020 happened last Friday (just one year late!). Sadly, the positive headlines for soccer fans are not necessarily the same for the commercial real estate market, with suggestions pointing to a large volume of shopping centers in the UK that may need to be demolished.
2021 CLO Issuance Looks to Break Records
CLO issuance for 2021 looks set to obliterate previous records, with Fitch reportingissuance up to the end of May 2021 at 12.4 billion with 31 deals priced already. That number is very similar to that of 2019, which came in at 28 transactions and comes as a surprise to many in the industry given the lag we saw in the market in March as a result of a wave of refinancing swamping the market.
European issuance is just 900 million short of the 2017 record of 45.7 billion and is set to be broken with 3 deals by the end of June. Meaning the issuance record will be beaten before the second half of the year even begins - A great sign for the CLO market that Trepp will continue to monitor.
The Demise of the Shopping Center?
The retail market has not been short of bad news since the start of the Covid-19 pandemic over a year ago, with Trepp experts Manus Clancy and Joe McBride sharing updated news and bullish vs. bearish insights into the market on The TreppWire Podcast.Last week, the European retail market headlines were no different, with Bisnowreporting as many as 70 shopping centers will need to be demolished, and another 200 will need serious redevelopment in part as residential, leisure, or office floorspace.
These reported figures come from the Local Data Company who suggest that up to a third of the UK's mall space may need to be either demolished or undergo large-scale repurposing.
Some opportunistic investors are seeing headlines such as thees and price tags that reflect the struggles seen in the sector this past year, and are starting to invest to build up these centers. Just last month, U.S. investor Ardent reportedly exchanged contracts to buy the Touchwood shopping center in Solihull in the West Midlands for £90 million.
The UK shopping center is a space for those in the CRE market to watch and observe, and Trepp will track and reflect on the investment behavior that is impacting the market.
CMBS Surveillance: Recent European Special Notices
Trepp is acknowledged as the market leader in providing data and analytics to the CMBS, CRE & CLO markets. Trepp's European Headquarters, located in central London, has teams focused on European data, modeling, and content within all three asset classes.
Disclaimer: The information provided is based on information generally available to the public from sources believed to be reliable.