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European Real Estate Loan Sales Market Q4 2014

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A record-breaking year sees over €80.6bn of CRE loans and REOs change hands as US capital floods the European market.

  • C&W Corporate Finance has recorded a staggering €80.6bn of closed European commercial real estate (CRE) and real estate owned (REO) transactions in 2014, over 2.5x the volume recorded for 2013.
  • Driven by investor interest and vendors accelerating deleveraging, 2014 was the year of the “mega-deal”. 16 transactions in excess of €1bn were recorded which accounted for 62% of the annual volume.
  • Spain had a “Herculean” year while investor interest in the UK and Ireland remained solid as a “Rock” with the geographical pattern of sales in 2014 continuing in the same vein as previous years.
  • Asset management agencies were key vendors in 2014, responsible for 41% of closed transactions in 2014 compared to 17% in 2013. IBRC and NAMA alone accounted for 36% of the total volume closed for 2014.
  • Europe continues to be awash with US capital which was associated with acquiring 77% of all opportunities by face value in 2014, up from 67% in 2013.
  • A substantial pipeline of €21.7bn in live sales is currently being tracked with 10 and 11 transaction being marketed in Ireland and Spain respectively. Both countries will remain highly active over the next twelve months driven by a continual recovery of the property market and the economy in general.
  • With IBRC almost completing its deleveraging process, NAMA and SAREB will have important roles going forward.
  • C&W Corporate Finance anticipates that the volume of closed CRE loan and REO transactions in Europe will be in the region of €60-70bn in 2015.