Meh. Office buildings are struggling post-Covid. Lots of companies have greatly expanded their work from home programs and left them in place, and need much less office space as a result. This affect large commercial office leases significantly.
Here’s a US story on the same theme.
PIMCO’s Columbia Property Trust defaults on $1.7B of office loans
Mortgage tied to seven-building portfolio spanning NY, SF
https://therealdeal.com/national/2023/02/22/pimcos-columbia-property-trust-defaults-on-1-7b-of-office-loans/
There will be more.
Exactly. Once sold as 100% safe investments these REITs and related bonds are each becoming a potential financial land mine. The workout guys will do well but the holders could be facing a haircut IMO.
Ping to FreedomPoster’s reminder just a few short weeks ago.