United Kingdom
March 2009
In this update we focus on strategies for managing some of the issues arising from the current downturn:
- financing and refinancing strategies.
- tax efficient debt restructuring.
- tips for surviving and thriving in a harsh and uncertain business environment.
Turning to the real estate market as a whole the key features remain:
- a dearth of bank debt.
- uncertainty in real estate valuations.
- equity sitting on the sidelines.
- cash firmly king.
- With sentiment shaken and confidence at an all time low we simply do not see a marked change in the market over the coming few months.
As advisers we are noticing the following trends amongst our clients:
- an increase in both small and large funds being established to take advantage of distressed opportunities.
- the emergence of debt funds to originate junior loans.
- bolstering of balance sheets through selective asset disposals and equity raises.
- internalisation of the external asset management function, and
- moves to de-list shares from public markets.