European banks sold loans with a face value of almost €22bn last year. New data for Real Estate Capital compiled by Cushman & Wakefield Corporate Finance records 40 completed commercial real estate loan portfolio and real estate owned (REO) sales across Europe in 2012. The deal sizes ranged from €40m to €2bn, with more than 90% traded in the UK, Ireland, Germany and Spain.
After a very busy final quarter last year, the volume sold in Q1 2013 was relatively lower, at €3.4bn, although there were a total of 11 transactions. Cushman & Wakefield expects a reduction in the average portfolio size this year and an increasing number of buyers. The firm sees a build-up of activity among deleveraging institutions, with almost €12bn of loans in the market for sale now in 14 deals and a further 17 planned with a principal balance of €18bn.