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European Real Estate Loan Sales Market Q4 2015

The full report

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.