CAPITAL WATCH: European CRE loan sales

Cushman & Wakefield market commentary

A total of €14.5bn of non-performing loan (NPL) and distressed real estate sales by banks in Q3 2014 brought total sales in the nine months to September to €54.9bn — more than the volumes of 2012 and 2013 combined.

Since September, two Spanish, four Irish and one UK portfolio have been sold.

“Mega-deals” of more than €1bn have driven volumes this year; in Q3, the largest transaction was Hercules, the €6.4bn Spanish residential portfolio bought by Blackstone.

One feature of the NPL market is a rise in secondary sales, where “mega-deal” buyers market smaller, repackaged portfolios to cash in on demand. Another is a rise in activity in ‘new’ markets, notably Romania and Greece.

Cushman & Wakefield Corporate Finance is tracking over €30bn of live deals and the results of the ECB’s asset quality review, due
as Real Estate Capital went to press, are likely to act as a catalyst for more.

Click to see European CRE loan sales: CAPITAL WATCH: European CRE loan sales