07-05-2016, 11:19 PM
More than £650m of commercial property deals in the City of London have collapsed following the UK’s vote to leave the EU, including the proposed acquisition of a landmark office block by Germany’s Union Investment. The German fund manager had been in advanced discussions to buy Cannon Place, a 389,000 sq ft office scheme on Cannon Street in the City, for about £465m from Hines, the US property developer, according to three people familiar with the talks.
London property deals worth more than £650m collapse after Brexit - FT.com
Investment into UK real estate almost halved in the first six months of 2016 from a year earlier, according to Cushman & Wakefield, the property agents, as the referendum loomed. Investors spent £7.5bn in the period, down from £13.3bn a year earlier, with institutional funds in particular drawing back . Private wealth remained active, however, and some agents are hopeful that the market could be stimulated by the weakening of sterling against other currencies that has made UK property comparatively less expensive for overseas investors.
London property deals worth more than £650m collapse after Brexit - FT.com
If the U.K.’s decision to leave the European Union is going to hurt the U.S., it will likely come through the banking system rather than a direct hit on economic growth, Goldman Sachs warned Wednesday. “Financial contagion is a greater source of risk given the high interconnectivity between the U.S. and U.K. financial systems. However, the post-financial crisis central banking and regulatory regime should limit concerns over the banking sector,” wrote Elad Pashtan, senior U.S. economist, in a note.
‘Financial contagion’ biggest risk to U.S. from Brexit: Goldman - MarketWatch
The economist notes that, according to Bank for International Settlements data, U.S. banks held $424 billion in claims (assets) on U.K. borrowers in the fourth quarter of 2015, including $46 billion in loans to U.K. banks. Derivatives, guarantees and credit commitments account for another $495 billion of potential U.S. bank exposure to the U.K. In aggregate, the U.S. banking system’s exposure to the U.K. stood at $919 billion, far exceeding that of any other country, Pashtan note. U.K. banks also have significant exposure to America, holding an aggregate of $1.4 trillion of financial claims on U.S. borrowers, the data show.
‘Financial contagion’ biggest risk to U.S. from Brexit: Goldman - MarketWatch