Real Estate Investors Turn to Lawyers After ‘Huge’ CO2 Shock (2)

Real estate investors already battered by high interest rates now face the prospect of significant writedowns triggered by new European regulations.

Property owners across the region will need to invest vast sums in renovations to ensure their buildings aren’t emitting illegal levels of carbon dioxide or consuming excessive amounts of energy, according to lawyers advising the sector.

The situation “is causing huge problems,” said Rory Bennett, a managing associate at the real estate practice of Linklaters in London. Portfolios containing energy-inefficient buildings face “the task of expending a huge amount of capital to bring that up to scratch, together ...