C&W Corporate Finance has analysed 12 European asset management agencies (AMA) to determine their combined gross (i.e. face value) non-core real estate exposure as at the end of Q2 2015. Consequently, it has estimated the expected levels of CRE loan and REO sales in future years. The figures in the report relate to the face value of European CRE loans, residential mortgages and REOs held by entities which have been set up by European governments to externally receive and then liquidate the “bad” assets of one or more national banks.
In total, European AMA hold c. €233bn of gross non-core real estate assets, which after allowing for loan loss provisions equates to a net total of c. €144bn (62% of the gross exposure). Overall, it is estimated that AMA represent c. 43% of the total non-core exposure across Europe, highlighting their significant role within both the current and future deleveraging landscape.