Market Data

International Beat(9)

Mexico's Big Deal

HSBC sold 90 bank branches and regional offices in Mexico to eight local investors in a $90 million sale-leaseback deal, according to Jones Lang LaSalle, which assisted with the transaction. More than 100 foreign and local investors showed interest in the properties — which comprise Mexico’s largest transaction to date — and for good reason: With a stable economy and 3.3 percent GDP, Mexico offers average real estate returns above most European and U.S. markets, says JLL.

European Lenders Still Cautious

European banks still hold a high percentage of defaulted loans and face loan maturity problems next year, according to EC Harris’ fall Property Finance Trends Report: “We expect that post-2012 there will be a real risk that mature loans in need of refinancing will not be able to access leverage through traditional commercial mortgage-backed securities and this may lead to more debt pile ups.”