European Real Estate Loan Sales Market Q4 2015

European Real Estate Loan Sales Q4 2015

The European Real Estate Loan Sales Market Q4 2015 update report comprehensively analyses the non-core real estate exposure of 51 European banks (including AMA) to understand the commercial real estate (CRE) loan sales market in the years to come. Following a record €85.9bn of closed sales in 2015, this report provides a detailed outlook of the year ahead.

Key takeaways:

  • C&W Corporate Finance recorded €85.9bn of closed European real estate loan (RE loan) and real estate owned (REO) sales in 2015, surpassing the previous high of €82.1bn in 2014.
  • Q4 2015 was the busiest quarter ever recorded with over €39.4bn of transactions closing, driven by UKAR’s Granite Portfolio and NAMA’s Project Arrow.
  • The UK and Ireland once again led the way, together accounting for 71% of all sales. Spanish sales dropped by 41% whilst Italian sales increased 12.5 times.
  • Asset management agencies (AMA) related to 38% of the total volume transacted in 2015, with UKAR and NAMA alone accounting for €30.5bn of sales.
  • US Capital continued to flood into Europe, with Cerberus topping the investor league table having purchased €28.1bn of European RE loans and REOs in 2015.
  • C&W Corporate Finance’s “heat map” has identified the UK, Ireland, Spain, the Netherlands and Italy as markets predicted to have high levels of activity in 2016.
  • As the fourth busiest market in 2015 and more banks readying portfolios for sale, Italy is tipped to see significant growth in sales volumes in 2016.
  • With €78.6bn of live and planned sales currently being tracked, C&W Corporate Finance estimates that the 2016 closed transaction volume will be in the region of €70-80bn.
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