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Macquarie Group struggling in tower of debt

Discussion in 'Real Estate' started by Billv, 5th Apr, 2009.

  1. Billv

    Billv Getting there

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    The Rudd Government's plan to rescue the commercial property market could have one of Australia's most prestigious properties as its first customer.

    The Macquarie Group is struggling to refinance $128.9 million in debts on No1 Martin Place in Sydney, which houses not only the bank itself but also the Australian Securities & Investments Commission.

    Having put the property on the market late last year, market sources say the only offer it has so far received would represent a 22.6 per cent loss on the property's value as at June 2008.

    The Government's planned public-private property fund, dubbed "Rudd Bank" by the Opposition, has been designed to stop the fire sales of commercial properties, which it fears will undermine the health of the Australian banking system.

    Senior researcher with property analysts BIS Shrapnel, Jason Anderson, said the fund would face a hard decision over whether to take out borrowers at 100c in the dollar as originally intended, exposing taxpayers to a possible loss, or accept that the market had already fallen by around 20 per cent.

    There have been no major CBD office property sales since the financial crisis intensified in the second half of 2008.


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    Macquarie Group struggling in tower of debt | The Australian
     
    Last edited by a moderator: 6th Apr, 2009