Brookfield Cuts Value of Property Holdings Amid Market Swoon
This article from Bloomberg may be of interest to subscribers. Here is a section:
“Unfortunately, the negative sentiment is dragging down the real estate sector more broadly,” the firm’s president, Connor Teskey, told investors during an earnings call Wednesday. “We think that’s completely unfair.”
The Brookfield group is one of the world’s largest owners of prime office properties, with a portfolio that includes New York’s Manhattan West and London’s Canary Wharf. Office landlords in major cities around the world are being squeezed by a combination of higher borrowing costs and lower occupancy, as many companies continue to allow employees to work from home at least part of the time.
Brookfield Asset’s parent company has defaulted on mortgages covering more than a dozen office buildings, mostly in Los Angeles and around Washington.
The property market is “bifurcated” as high-quality assets perform well and lower-quality assets struggle, Teskey said on the call.
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