What happened: According to Bloomberg, $17B commercial real estate debt in Sweden is maturing in the next two years, and this is mounting pressure on landlords to sell their properties to raise cash. Commercial real estate transactions in Sweden are currently at record-low figures. What the numbers say: Debt maturities for this year stand at $4.9B, while next year, it is expected to reach $12.1B. Bloomberg's data revealed that Heimstaden Bostad and SBB have $2.5B and $765M debt maturing, respectively.
Relevance: Landlords rushing to sell properties to raise cash has led to steep discounts, which could potentially recalibrate property valuations and intensify funding gaps. Sweden's central bank, Riksbank, cautioned selling large volumes could negatively impact the country's financial stability. This could also add more burden to landlords looking to refinance their loans. |
