European Real Estate Loan Sales Market

Monday, 19.10.2015

Over €233bn of non-core real estate exposure still held by European asset management agencies

  • C&W Corporate Finance estimates that European asset management agencies (AMA) hold over €233bn of gross non-core real estate exposure.
  • Together, NAMA, UKAR and SAREB hold approximately 91% of this total, the majority of this being related to residential assets.
  • AMA have disposed of €44bn of commercial real estate (CRE) loans and real estate owned assets (REOs) since the start of 2012, equating to 27% of all European sales by volume over this timeframe.
  • NAMA and UKAR will be key vendors in 2015, recently launching the €7.2bn Project Arrow and €17.6bn Granite Portfolio respectively.
  • Due to the success of existing AMA, further entities are likely to be established in the near future in the likes of Italy, Romania and Poland.
  • C&W Corporate Finance has recorded €9.5bn of closed European CRE loan and REO transactions in Q2 2015, bringing the total for the first half of the year to €23.5bn. • Predictably, the UK and Ireland accounted for 49% of this total with a further 13% relating to Spain.
  • Permanent TSB remain at the top of the list of the most active vendors following a string of completed deals earlier in the year.
  • The highest ever level of live and planned sales is currently being tracked, together amounting to over €99bn which suggests a busy second half of the year.
  • These sales include several “mega-deals” from NAMA, Lloyds Banking Group and RBS.

European CRE Loan Sales Market