More than €10bn of outstanding loans backing the European CMBS market could be in need of refinancing in 2014.
According to rating agency Standard & Poor’s, some €13bn of loans are scheduled to mature next year, the bulk of which come to an end in January and April. Of the total, about €3bn have already prepaid.
The upcoming maturities include 31 UK loans with a face value of more than €4.2bn, second only to the 60 German loans totaling €5.3bn.
More than half of the loans by balance are secured on offices.
Although 2014’s refinancing challenge is not as acute as 2013, next year’s loan maturities will follow a year in which the number of loans in special servicing increased to just under 50% of S&P’s remaining CMBS universe.
This could increase the difficulties facing loans maturing in 2014, as they compete with these specially serviced loans for the limited amount of available refinancing opportunities.
bridget.o’connell@estatesgazette.com
