KPMG has appointed Edmund O’Kelly to head its restructuring real estate specialist team as it prepares for a “wave of fall outs” in the commercial property market.
O’Kelly has more than 20 years’ experience in real estate working previously as an executive director for Chesterfield Properties, Wilson Bowden and Consensus/Rotch.
He also headed the Andersen real estate restructuring team, dealing with major appointments including Maxwell, Ferranti and Leyland Daf during the 1990’s recession.
Richard Fleming, UK head of restructuring at KPMG, said: “We believe we are heading towards another important milestone in this recession: the fall out from the commercial property sector.
“Our work on the JJB CVA and the Lehman real estate portfolio in
“Edmund’s appointment is an important boost to our real estate restructuring specialist team, which feeds into a multi-disciplined, cross-border team.”
O’Kelly, real estate restructuring director at KPMG, added: “We are predicting a wave of fall-outs in the commercial property market as the true value of losses becomes apparent.
“Commercial property values have fallen 43% from their peak in mid 2007 (according to IPD data); further falls are predicted with rents and occupancy levels are also in decline.
“Indeed the wave of restructuring that will be required in the commercial property market could be the next big milestone in this recession; following other landmark moments such as the fall-out from structured investment vehicles (SIVs).
“We will be working with lenders and property companies to resolve the issues rapidly coming up to boiling point, using the innovative approaches that have been well received in the industry, such as the JJB CVA.
“With the June quarter-day fast approaching and with £43 bn of debt repayments falling due this year, we could well see a very busy period of activity.”
