European RE Loan & REO Sales Market Q4 2015_Amended 26 Jan 2016

C&W Corporate Finance

EUROPEAN REAL ESTATE LOAN SALES MARKETQ4 2015

A C&W Corporate Finance Publication

EUROPEAN REAL ESTATE LOAN SALES HEAT MAP 2016Following a record €85.9bn of closed sales in 2015, C&W Corporate Finance provides a detailed outlook of the year ahead

• 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 €77.6bn 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.

2C&W Corporate Finance

JANUARY 2016

European Real Estate Loan Sales Market

CLOSED TRANSACTIONS 2015VOLUMESNew record set as closed European RE Loan and REO sales volume surges past €85.9bn in 2015

Following a flurry of activity in Q4, C&W Corporate Finance estimates that a total of €85.9bn of RE loan and REO transactions completed throughout 2015. With many key vendors completing their deleveraging plans, the total for 2015 surpassed the previous high of €82.1bn recorded in 2014.

Despite volumes in the first nine months of the year trailing those observed in 2014, the total for 2015 was substantially boosted by a handful of very large deals in the UK and Ireland towards the year end. In fact, over €39.4bn of transactions closed in Q4 alone, representing 46% of the annual total and the most ever transacted in a single quarter.

KEY TRANSACTIONSRecord 2015 closed volume built on “Granite”

The final quarter of 2015 saw both UKAR and NAMA complete the sales of their respective c. €17.8bn Granite Portfolio and c. €6.3bn Project Arrow, filling the gap in the market left by the likes of IBRC, Lloyds Banking Group (LBG) and RBS who took centre stage in 2014.

Looking to repay a Government bailout loan, UKAR sold a portfolio of former Northern Rock mortgages to Cerberus, who themselves had an agreement with TSB Bank for the transfer of a c. €4.5bn portion of better performing loans. Having been purchased by BancoSabadell earlier in 2015, this was a leading example of how international banks are increasingly looking to use the UK loan sales market to rapidly grow their lending books.

Concurrently, Cerberus also purchased Project Arrow, NAMA’s largest ever sale. This alone accounted for c. 26% of the Irish closed volume and highlights the AMA’s key role in the loan sales market.

c. €85.9bn of closed transactions

during 2015

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EUROPEAN RE LOAN & REO CLOSED TRANSACTIONS 2012 – 2015 (OPB - €BN)

Source: C&W Corporate Finance

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QUARTERLY EUROPEAN RE LOAN & REO CLOSED TRANSACTIONS (OPB - €BN)



JANUARY 2016


TYPE & SIZEMore residential backed portfolios coming to the market

The UKAR sale highlights how the collateral type has changed over the past year. Whilst 2014 was dominated by “mega-deals” (sales with a face value greater than €1bn) secured mainly by commercial real estate (CRE) with an element of residential, 2015 has seen large residential loan portfolios take the headlines. Additionally, residential loan sales accounted for 38% of the total volume in 2015 compared to 18% in 2014. This is unsurprising given that the recovery in residential assets tends to lag that of CRE, and indicates a trend which is likely to follow across Europe in future years.

Compared to Q4 2014 where €24.0bn of RE loans and REOs changed hands across 47 transactions, only 28 deals completed in Q4 2015. Furthermore, with 15 “mega-deals” closing in 2015 compared to 16 in 2014, the average sales volume has increased by 6% YOY to c. €627m. Overall, it has become apparent in 2015 that more vendors are now disposing of their non-core assets in a small number of large transactions to maximise proceeds while economising costs and time.

GEOGRAPHY71% of 2015 transactions relate to the UK and IrelandDue to a busy Q4, the UK once again leads the way accounting for 43% of all sales with Ireland maintaining 2014 activity levels with c. €23.7bn closing in 2015. In contrast, Spain saw a 41% drop in activity compared to 2014; meanwhile Italian sales increased 12.5 times to c. €5.0bn.

“Although the UK and Ireland have again topped the sales volumes in 2015, there

has been a real shift in the product vendors are offering. Supported by

growth in the underlying residential market, large mortgage portfolios have

dominated the headlines.”

Federico MonteroPartner, Head of Loan Sales

EMEA Corporate Finance


36,854

23,746

3,314

130

2,408

9,536910

4,992

2,200

1,633156

59

IrelandUK

Spain

Germany

Netherlands

Italy

Romania

Portugal

Pan-European

Belgium

SloveniaFrance

CLOSED SALES BY GEOGRAPHY 2015 (OPB - €M)

43%

27%

11%

6%

4% 9%

UK IrelandSpain ItalyGermany Other Europe

69%

18%1%

12%

55%38%

0.3%7%

CRE Loans Resi LoansCorporate Loans SMEREOs

TYPE OF CLOSED SALES


2014

2015


JANUARY 2016


KEY VENDORSGranite Portfolio makes UKAR top sellerDue to the aforementioned €17.8bn Granite Portfolio, UKAR was the largest vendor of European RE loans in 2015 accounting for c. 21% of the total annual sales volume. With c. €49bn of gross non-core real estate (NCRE) assets remaining, the AMA is expected to be active in 2016 and is reportedly planning the sale of c. £17bn of Bradford & Bingley (B&B) loans.

NAMA’s book going in the right direction after “Arrow”

Across the Irish Sea, NAMA also had a busy year closing c. €12.7bn of RE loan and REO sales representing an increase of 25% on volumes recorded in 2014. In contrast to UKAR, this total was across 26 transactions making the agency the most active vendor of the year based on the number of deals completed.

The most notable of NAMA’s deals was the €6.3bn Irish Project Arrow acquired by Cerberus, the entity’s largest deal to date as it looks to redeem at least 80% of its senior debt by the end of 2016. Since the underlying Irish real estate markets have continued to improve, the agency has also increased the number of land and hotel REOs coming to market. In a bid to maximise its portfolio’s value, NAMA has recently announced that it will enter the next phase of its programme and begin to look for development partners, a tactic also adopted by its Spanish counterpart SAREB.

RBS “Clear”s up legacy Irish Ulster Bank portfolioAlthough it was previously believed that Project Finn was RBS’s final sale of Ulster Bank loans, December saw the financial institution close the sale of Project Clear, a c. €2bn portfolio secured against 1,850 acres of zoned land. The successful parties of Cairn Homes and Lone Star will now look to build approximately 20,000 houses and apartments amid an improving residential market. Despite currently marketing the £600m Project Detroit of mainly UK granular performing loans, RBS will likely take a back seat in 2016 as it completes the run down of its internal bad bank, Capital Resolution.

AMA closed €32.5bn of sales in 2015Given the activity of both NAMA and UKAR, it is unsurprising that AMA accounted for 38% of the total volume of European RE loans and REOs transacted in 2015. The importance of these two entities is further highlighted by the fact that AMA related to 51% of all sales in the UK and Ireland.

However, just €1.9bn of the annual total corresponds to the remaining European AMA. Looking ahead to 2016, it can be expected that these agencies will play a more significant role in the market. FMS is reportedly selling the German €230m Project Samba and has further portfolios lined up, whilst the Dutch government has recently announced that it will look to privatise Propertize which still has c. €5.5bn of NCRE exposure. Despite holding a relatively small volume of soured loans, the recent setup of an Italian AMA appears to be a first step in the resolution of a wider problem in Italy.

TOP 10 VENDORS 2015

VENDOR CLOSED SALES (OPB - €M) #

1 UKAR 17,847 1

2 NAMA 12,702* 26*

3 RBS 8,090* 13*

4 GE Capital 6,547 3

5 Permanent TSB 5,481 4

6 LBG 3,711 2

7 Aviva 3,645 1

8 UniCredit 3,135 5

9 Commerzbank 2,952 2

10 CaixaBank 2,480 3

UKAR and NAMA

together account for over

36% of all transactions in 2015

Source: C&W Corporate Finance* Note: Includes transactions with other vendors

VENDORS OF CLOSED SALES 2015


21%

15%

9%

8%6%

41%

UKAR NAMA

RBS GE Capital

Permanent TSB Remaining Vendors


JANUARY 2016


INVESTOR LEAGUE TABLE 2015Cerberus retains position at the top of C&W Corporate Finance’s Investor League Table, purchasing over €28bn of European RE loans and REOs in 2015

Following on from its successes in 2014, Cerberus once again finished the year at the top of the Investor League Table having acquired c. €28.1bn of RE loans and REOs across Europe. This represented a staggering 59% increase on the volume the entity purchased in 2014, which in itself set a record. Of course, this was significantly bolstered by its procurement of UKAR’s Project Granite which alone accounted for c. 48% of its total.

Whilst the top 5 spots in 2014 were fiercely competed for, it was significantly noticeable how far ahead Cerberus was from any other entity in terms of the face value of loans acquired in 2015.

Holding on to second place, Lone Star remained highly active throughout Europe over the past year. The key transaction for the US private equity firm was the €3.6bn Project Churchill sold by Aviva, of which c. €200m has subsequently been acquired by Tristan Capital in a process known as Project Randolph.

Making up the remainder of the top five spots are the consortium of Blackstone, CarVal and TPG which completed the acquisition of €3.8bn of GE Capital UK mortgages, TSB Bank with its share of Project Granite, and Deutsche Bank with its purchase of €1.2bn of Erste Group loans.

INVESTOR2015 2014

KEY PROJECTSVOLUME (€M) # POSITION

1 Cerberus 28,110 11 1 • Project Arrow - €6.3bn• Granite Portfolio - €13.4bn

2 Lone Star 5,778 5 2 • Project Parrot NPLs - €0.7bn• Project Churchill - €3.6bn

3 Blackstone / CarVal / TPG * 5,130 1 N/A • GE Capital Mortgages - €5.1bn

4 TSB Bank 4,455 1 N/A • UKAR Northern Rock Mortgages - €4.5bn

5 Deutsche Bank 3,749 6 6 • Project Maeve – €0.8bn• Banca Comerciala Romana Loans – €1.2bn

6 Oaktree Capital 3,697 6 7 • Project Gaudi - €0.6bn• Project Wind - €1.1bn

7 CarVal / Goldman Sachs * 3,500 1 4 • Project Poseidon - €3.5bn

8 Apollo / Deutsche Bank * 3,035 3 N/A • Project Leinster - €1.0bn• Project Finn CRE Loan Tranche - €1.5bn

9 Allianz / Hammerson 2,570 1 N/A • Project Jewel - €2.6bn

10 Sankaty 2,125 4 N/A • Project Commander - €0.6bn• Project Chloe - €0.8bn

Cerberus and Lone Star

take top two spots as US

capital continues to dominate

INVESTOR LEAGUE TABLE 2015

* Note: Total volume excludes transactions completed individually by each entity Source: C&W Corporate Finance

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TOP 5 RE LOAN & REO BUYERS 2015 (OPB - €BN)

Source: C&W Corporate Finance* Note: Volume excludes transactions completed individually by each entity


JANUARY 2016


EUROPEAN RE LOAN SALES HEAT MAPFollowing extensive research, C&W Corporate Finance has developed a “European RE Loan Sales Heat Map” with the aim of providing an overview of how it foresees the market developing in 2016 and beyond Based on an understanding of remaining NCRE exposure and knowledge of activity to date, a forecast of 2016 sales volumes has been estimated for each of the key European real estate loan sales markets. Please note, that those countries shaded in grey have not been analysed as they are either viewed as being relatively inactive or lack market transparency.

The following pages provides a summary of a detailed analysis of each of the markets shown on the map including a review of market to date, the remaining NCRE exposure, and which entities are likely to be key future vendors.

PORTUGALOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure €11.0bnAMA NCRE exposure €2.8bn# Banks / AMAs with NCE 3 / 1

Closed RE Loan & REO Sales

2012 €0.1bn2013 -2014 -2015 €0.9bnTotal €1.0bn

Live Sales -Planned Sales -

IRELANDOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure €34.1bnAMA NCRE exposure €12.9bn# Banks / AMAs with NCE 4 / 1


2012 €4.5bn2013 €4.6bn2014 €22.6bn2015 €23.7bnTotal €55.5bn

Live Sales €0.6bnPlanned Sales €6.7bn

SPAINOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure €201.4bnAMA NCRE exposure €87.2bn# Banks / AMAs with NCE 11 / 2




UKOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure €84.5bnAMA NCRE exposure €51.0bn# Banks / AMAs with NCE 10 / 4




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JANUARY 2016


AUSTRIA & CEEOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure N/A*AMA NCRE exposure €10.3bn# Banks / AMAs with NCE N/A* / 4


2012 -2013 €0.2bn2014 €1.2bn2015 €4.0bnTotal €5.3bn

Live Sales €0.6bnPlanned Sales -

* Note: C&W has not estimated the total NCRE exposure of Austria & CEE due to a lack of market transparency

GERMANYOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure €13.7bnAMA NCRE exposure €3.4bn# Banks / AMAs with NCE 7 / 1




NETHERLANDSOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure €15.9bnAMA NCRE exposure €4.7bn# Banks / AMAs with NCE 5 / 2




ITALYOverview Closed RE Loan & REO Sales 2012-2016(f)NCRE exposure €66.4bnAMA NCRE exposure €1.1bn# Banks / AMAs with NCE 6 / 2


2012 -2013 -2014 €0.4bn2015 €5.0bnTotal €5.4bn


2016 FORECASTED SALES VOLUME KEY

= N/A

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JANUARY 2016


Top Vendors2012-2015

Top Buyers2012-2015

NCRE Holders2016

1 NAMA€16.6bn

Cerberus€11.2bn

NAMA38%

2 RBS€11.8bn

CarVal / GS1

€9.0bnAIB34%

3 IBRC€10.7bn

Lone Star€5.9bn

Bank of Ireland20%

4 LBG€10.3bn

Apollo / DB1

€3.0bnDanske Bank8%

5PermanentTSB€2.5bn

Apollo€2.6bn

Permanent TSB1%


Top Buyers2012-2015

NCRE Holders2016

1 UKAR€21.8bn

Cerberus€31.4bn

UKAR58%

2 IBRC€8.0bn

Lone Star€12.3bn

Co-operative14%

3 NAMA€7.9bn

Blackstone / CarVal / TPG1

€5.1bn

Nationwide7%

4 LBG€7.1bn

TSB Bank€4.5bn

Permanent TSB4%

5 RBS€6.6bn

CarVal2€3.4bn

Bank of Ireland4%

6.710.9

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UK - RE Loan & REO Transactions (OPB - €bn)

IRELANDActivity peaked in 2015Like the UK, Ireland has been a key target for opportunistic US investors and loan sales activity has increased substantially since 2012. With over €23.7bn of closed sales, 2015 was the most active year ever recorded and was boosted by NAMA’s €6.3bn Project Arrow as well as LBG’s €3.7bn Project Poseidon which marked its final sale of Irish non-core assets. Whilst IBRC, LBG and RBS have now completed their deleveraging, NAMA still has c. €38bn of gross NCRE of which a third is estimated will be subject to loan sale processes. Other potential key vendors with exposure include Allied Irish Bank and Bank of Ireland, the former of which is rumoured to be mulling an imminent sale.

NAMA to continue as key vendor in 20162016 will likely be the last significant year for Ireland, albeit volumes are unlikely to reach those seen in 2014 and 2015. NAMA will look to complete its sales plan and thereafter the market can be expected to quieten as stock levels diminish. Activity will be supported by strong investor demand on the back of further expected compression of prime real estate yields throughout Ireland.

(*) Notes: 1. Volumes exclude transactions completed individually by each entity2. Total for CarVal excludes a c. €740m deal completed in partnership with Goldman Sachs

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UKOver €36.9bn closed in 2015The UK has led activity from 2012, with the likes of LBG and RBS quick to realise their non-core assets and set up internal “bad banks”. 2015 saw a record €36.9bn of RE loans and REOs change hands, more than the €31.3bn sold across all of Europe in 2013.However, this total was magnified by UKAR’s €17.8bn sale and the number of sales is a better indication of the future direction of the market. 28 transactions closed in 2015 compared to 41 in 2014, signalling that supply is becoming more lumpy and will begin to reduce going forward.

2016 to be busy but limited supply of future vendorsApart from UKAR which has announced plans to explore the sale of c. £17bn of B&B mortgages, the UK has limited supply. Notable holders include the Co-operative Group which is gauging investor appetite for its €6.6bn Optimum Portfolio, and Permanent TSB which delayed the sale of its remaining Capital Home Loans due to market congestion. The type of product on offer is also changing, with more residential rather than CRE loans coming to market. With the quality of loans increasing, several performing portfolios have recently traded including Coventry Building Society’s sale of a c. €419m portfolio to TwentyFour Asset Management. This trend is anticipated to continue and will attract a different type of buyer to the usual US private equity firms.


JANUARY 2016


GERMANYGermany opted for different approach to UKCompared to the UK and Ireland, the German RE loan sales market has seen relatively low levels of activity. In fact, levels have been decreasing since its high of €8.2bn in 2013, and just €3.3bn of sales were recorded in 2015. Eager to avoid the large write-downs crystallised upon selling non-performing loan (NPL) portfolios and supported by low funding costs, German financial institutions have held their NCRE exposure with the view that the underlying real estate will rebound. As a result, the main vendors to date have been international rather than German banks such as RBS, Barclays and LBG.

Investor interest remains high but stock limitedLooking at the remaining NCRE exposure, the main holder is Commerzbank which includes the assets held by Hypothekenbank Frankfurt. Having completed sales of non-core assets throughout Europe, the group is likely to turn its attention to its remaining German exposure over the coming years. FMS Wertmanagement is also likely to follow suit and is reportedly preparing its residual exposure for sale in addition to the currently marketed €230m Project Samba. In conclusion, the size of the German NPL market is limited, although those who do decide to sell will benefit from robust investor appetite.

NETHERLANDSGrowing activity expected to continueWith several Dutch banks springing into action, 2015 saw c. €2.4bn of closed sales representing an increase of 66% YOY. Since the Netherlands is behind the UK, Ireland and Spain on the loan sales curve, activity can be expected to increase further.Transactions to date have had an average size of c. €238m, allowing a wealth of investors to participate in sales processes. Combined with the fact that significant improvements are anticipated in the Dutch real estate market, investor appetite will remain high over the upcoming years. The holders of NCRE exposure such as Rabobank and ING will be hoping that this forecast holds true, and will be eager to take advantage.

“Swan” comes to surfaceThe main headlines in 2016 will undoubtedly be grabbed by the sale of Propertize and its associated €5.5bn loan portfolio, dubbed Project Swan. Given that the Dutch portion of this portfolio alone accounts for c. 27% of the total NCRE exposure of the Netherlands, it is apparent that the future market will never be as large as other European countries. Nevertheless, the sale will attract attention from all the big players and could potentially lead to a string of subsequent secondary sales.


Top Buyers2012-2015

NCRE Holders2016

1 Staalbankiers€1.2bn

Achmea€1.1bn

Rabobank37%

2 Morgan Stanley€1.1bn

Fortress€1.1bn

Propertize27%

3 FGH Bank€1.1bn

Kildare€0.7bn

ING26%

4 GE€0.5bn

TPG / Patron€0.7bn

ABN AMRO4%

5 Propertize€0.4bn

Venn Partners€0.5bn

Van Lanschot3%


Top Buyers2012-2015

NCRE Holders2016

1 Lone Star€3.7bn

Aareal Bank€3.6bn

Commerzbank53%

2 RBS€1.9bn

Lone Star€3.5bn

FMS25%

3 Bundesbank€1.8bn

Cerberus€1.8bn

Landesbank BW6%

4 Barclays€1.6bn

Oaktree€1.6bn

ING5%

5 LBG€1.6bn

Kildare€1.6bn

Deutsche Bank5%

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JANUARY 2016


PORTUGALREO transactions boost Portuguese totalDue to several foreclosed asset sales, 2015 was the busiest year to date for the Portuguese RE loan and REO market with just under €1bn of closed transactions. In addition, many of the large Spanish transactions will contain Portuguese elements which will not be captured within the above volume. However, the total also emphasises that Portugal has limited stock.

Portugal to benefit from interest in SpainNonetheless, Portugal has around €11.0bn of NCRE which is not far short of that estimated for Germany. Of this total, it is estimated that 89% is held by Portuguese financial entities including Millennium BCP and CGD, with the remaining 11% held by Commerzbank Group which has been active in Iberia over the past three years.Although not entirely transparent, it is estimated that Novo Banco holds approximately €2.9bn of NCRE assets based on the former balance sheets of the Espirito Santo Financial Group. With investor interest “spilling over” from its neighbour Spain, there is a strong possibility that this exposure will come to the market at some stage over the next few years.

SPAINClosed volumes experience slight dip in 2015Contrary to expectations, Spain saw a 41% drop in the level of completed transactions in 2015 with c. €9.5bn closing. However, C&W Corporate Finance is currently tracking approximately €9.4bn of live sales including Bankia’s €4.2bn Big Bang REO portfolio highlighting that activity is still ongoing.One notable trend witnessed in 2015 which explains the above decrease was the number of defaulted sales, with a common reason being that bids did not meet vendor expectations. Many entities will continue to hold assets awaiting further improvements within the real estate markets and until they consider that they are minimising portfolio write-downs.

Increasing number of Spanish vendorsWith over €200bn of NCRE exposure, the Spanish RE loan sales market has a few years to go. Although SAREB holds 43% of this total, 2015 saw an increase in the number of new vendors bringing portfolios to the market. Many of these portfolios were relatively small as banks were “testing the water”, but it can be anticipated that larger sales will follow in the upcoming year from the likes of Caixabank and BBVA. As proven by the highly competitive processes and resulting number of underbidders seen to date, investor interest in Spain can be expected to remain high.


Top Buyers2012-2015

NCRE Holders2016

1Catalunya Banc€0.5bn

Lone Star€0.5bn

MillenniumBCP46%

2 CGD€0.3bn

Sheikh Al Jaber€0.3bn

Novo Banco26%

3BancoMontepio€0.1bn

Och-Ziff€0.1bn

CGD17%

4 Finangeste€0.1bn

HIG€0.1bn

Commerzbank11%


Top Buyers2012-2015

NCRE Holders2016

1 Catalunya Banc€6.4bn

Blackstone€7.7bn

SAREB43%

2 Hypothekenbank€5.0bn

Lone Star€4.3bn

CaixaBank14%

3 Bankia€4.3bn

BAML€3.3bn

BancoPopular12%

4 Santander€3.6bn

Oaktree€2.6bn

BBVA12%

5 SAREB€3.5bn

JP Morgan€2.2bn

Santander7%

6.24.5

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JANUARY 2016



Top Buyers2012-2015

NCRE Holders20162

1 Commerzbank€2.2bn

Deutsche Bank€1.6bn

HETA59%

2 Erste Group€1.6bn

JP Morgan€1.5bn

MARK22%

3 Volksbank€1.0bn

Lone Star€0.7bn

DUTB15%

4 IBRC€0.3bn

AnaCap / Deutsche Bank / HIG1

€0.5bn

KA Finanz4%

5 DUTB / Bawag€0.2bn

CA Immo€0.4bn


Top Buyers2012-2015

NCRE Holders2016

1 UniCredit€3.5bn

Fortress / Eurocastle1

€1.2bn

UniCredit45%

2 Citigroup€0.4bn

PIMCO / GWM1

€1.2bn

IntesaSanpaolo30%

3 Sofigeco€0.4bn

Cerberus€0.8bn

UBI Banca13%

4Popolare di Bari€0.4bn

PVE Capital€0.6bn

BancoPopolare8%

5 RBS€0.2bn

TPG€0.4bn

Commerzbank1%

ITALYItaly 4th busiest market in 2015Following a flurry of unsecured loan sales throughout 2013 and 2014, the Italian secured NPL market picked up in 2015. Approximately €5.0bn of RE loan and REO sales transacted throughout the year, supported by several sales from UniCredit which has become increasingly active. The fact that the closed sales volume has grown 12.5 times YOY summarises how Italy is gradually becoming a key market.

Just the start for ItalyAs the main holders of NCRE exposure, both UniCreditand Intesa Sanpaolo will look to step up their activity levels going forward. In addition, several international financial entities are keen to dispose of their Italian exposures, including Commerzbank, FMS and EAA. The latter is currently marketing the €350m Project Botticelli, which is secured by Italian residential and industrial assets. After months of speculation, Italy finally established a national AMA. Despite currently only holding c. €750m of real estate related NPLs, the National Resolution Fund can be expected to inherit further soured loans in the next 24 months. Following the success of other European AMA such as NAMA, the Italians have a good illustration of how best to maximise recoveries. With reforms to enforcement legislation now in place, the Italian market is set to grow further over the upcoming years.

AUSTRIA & CEEClosed sales volume more than tripled in 2015Like Italy, Austria and CEE has started to catch the eyes of investors over the past 18 months and consequently its sales volume has grown by 229% YOY to c. €4.0bn. The most significant sale of the year was Project Parrot, Commerzbank’s €2.2bn loan portfolio secured by assets throughout Romania, Hungary, Slovakia and the Czech Republic.

Further opportunities to come from CEE AMADespite this growth, several sales have fallen through due to legal complications, bids not reaching vendor expectations, or a lack portfolio information. The most recent example is ErsteGroup’s €3.6bn Project Neptune which was reportedly pulled after Lone Star’s binding bid fell short of the vendor’s threshold. Not only does this provide evidence that opportunities in CEE have more complexities than in other European regions, but also indicates that some buyers may be reluctant to participate in future processes. Although the NCRE exposure for Austria and CEE has not been estimated, the region has four AMA which will become more active going forward. Nevertheless, activity is unlikely to reach the levels seen in the UK, Ireland and Spain.

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Italy - RE Loan & REO Transactions (OPB - €bn)

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Austria & CEE - RE Loan & REO Transactions (OPB - €bn)

(*) Notes: 1. Volumes exclude transactions completed individually by each entity2. C&W has not estimated the total NCRE exposure of Austria & CEE due to a lack of market transparency. The

percentages provided are therefore of the total NCRE exposure of the four AMA listed


JANUARY 2016


LIVE & PLANNED TRANSACTIONSLIVE TRANSACTIONS€16.3bn of live sales being trackedC&W Corporate Finance is currently tracking €16.3bn of live transactions, a figure not too dissimilar to the €21.7bn being followed at the end of 2014. Unsurprisingly, this amount is way below the €54.0bn of live sales as at the end of Q3 2015, highlighting the extent of the activity witnessed in the final quarter of the year.

Spain accounts for 58% of live sales With activity in the UK and Ireland having peaked and now on the downward slope of the loan sales cycle, it is no surprise that Spain accounts for 58% of the current live total with €9.4bn of sales on the market. Despite reports that SAREB will remain relatively dormant over the upcoming year hindered by changes to Spanish accounting rules, there has been an increase in the number of Spanish lending entities bringing loan portfolios to the market. Having delayed its sale of the €4.2bn Project Big Bang, Bankia will look to close out the transaction at some point in 2016.Elsewhere in Europe, RBS will shortly look to finish its UK deleveraging through the €810m Project Detroit and as predicted, activity is steadily increasing in Italy with C&W Corporate Finance currently tracking two live sales as well as a healthy pipeline of planned transactions.

PLANNED TRANSACTIONSPipeline of €61.3bn of planned disposalsThe start of 2016 will be supported by a substantial pipeline of planned transactions which C&W Corporate Finance estimates has a face value of c. €61.3bn. The UK currently accounts for 62% of this figure given that UKAR, the Co-operative Group and Permanent TSB are all waiting for the most opportune moment to launch their respective UK mortgage portfolios.

Making up a further 11% is Ireland, with the ever-active NAMA looking to bring c. €6bn of RE loans to the market in the form of Projects Emerald and Ruby. As discussed, Allied Irish Bank is also rumoured to be preparing a portfolio for market which will help boost Irish sales volumes this year. Nonetheless, it is unlikely that activity in 2016 will reach the levels witnessed over the past two years.

Investors awaiting Dutch and Italian portfoliosUnsurprisingly, 10% of planned sales relate to the Netherlands due to Propertize’s plan to dispose of Project Swan. Competition for the portfolio will be high as investors look to gain an unprecedented exposure to the Netherlands, a market where opportunities of this size will be very few and far between. Following the success of a string of unsecured loan portfolios, Italy as the third largest holder of NCRE represents 8% of the planned transactions for 2016.

Currently tracking

€77.6bn of live and planned sales

PLANNED TRANSACTIONS BY COUNTRY

62%11%

10%

8%

4%5%

UK Ireland Netherlands

Italy Germany Other Europe


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LIVE TRANSACTIONS BY COUNTRY (€BN)


JANUARY 2016


2016 KEY CONSIDERATIONSGiven the ever-changing nature of the European RE loan and REO sales market, C&W Corporate Finance has outlined several key considerations and trends expected in 2016

• Loan-on-loan financing: Following a period of very aggressive financing, recent evidence shows that the trends in both LTVs and margins are now reversing as lenders’ terms become more and more dependent on the free cash flow available. As a result, there may be an opportunity for other players, such as private equity firms, to enter the loan-on-loan market and fill the space left by withdrawing lenders.

• Servicing platforms: Following a string of investors purchasing Spanish servicing platforms in 2013 and 2014, last year marked the beginning of a period of consolidation and secondary sales. Whilst several sales will have been triggered by the failure to gain SAREB contracts for the management of its loan and real estate portfolios, others are simply looking to exit the market. A prime example is Centerbridge’s sale of Aktua which it purchased in 2012 from Banesto. In comparison, there is growing investor interest for Italian servicing platforms ahead of an anticipated increase in activity.

• New asset management agencies: As discussed, 2015 saw new AMA established in both Italy and Hungary. The Italian National Resolution Fund inherited an estimated €750m of real estate related loans whilst MARK has yet to receive any soured loans. It is therefore likely that both of these entities can be expected to use 2016 to formulate exit strategies rather than be leading sellers.

• Secondary sales: Given the high levels of activity since 2012 and the typical workout plans assumed by investors, it can be expected that further secondary loan and foreclosed asset sales will come to the market in 2016. 2015 saw several secondary loan sales transact, the most recent being Lone Star’s disposal of c. €200m of loans from Aviva’s Project Churchill.

EXPECTATIONS FOR 2016C&W Corporate Finance anticipates €70-80bn of transactions in 2016

• UKAR’s sale of c. £17bn of B&B mortgages will be the largest sale to date if the entity goes ahead with its plans.

• NAMA will likely be the key seller in Ireland, further reducing its remaining portfolio through Projects Emerald and Ruby.

• Elsewhere in Europe, AMA such as FMS Wertmanagement and Propertize can be expected to be active.

• With an increasing number of vendors and over €200bn of NCRE, Spain is anticipated to be one of the leading markets in 2016. Furthermore, driven by increasing investor interest and a recovering real estate market, Italian lenders will bring more to the market over the upcoming year.

• Given the level 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.

2016 RE loan and

REO sales

forecasted to be in

the region of

€70-80bn

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FORECASTED CLOSED SALES 2016 (OPB - €BN)

Forecast Range

(€70-80bn)


JANUARY 2016


CLOSED RE LOAN & REO TRANSACTIONS 2015Over €85.9bn of closed transactions


DATE VENDOR PROJECT TYPE COUNTRY BUYER FACE VALUE €MJan-15 Banco Sabadell Project Triton CRE Loans Spain Deutsche Bank 435 Jan-15 Bank of Ireland Project Lagan 1 REOs UK Ability Group 20 Jan-15 Bank of Ireland Project Lagan 2 REOs UK Deka 60 Jan-15 Bank of Ireland Project Lagan 3 REOs UK DTZ Investors 54 Jan-15 BPER Sardaleasing 45 Italian properties REOs Italy Beni Stabili 30 Jan-15 Erste Group Project Saturn CRE Loans Romania Deutsche Bank 433 Jan-15 FGH Bank / HSH Nordbank Dutch office loan CRE Loans Netherlands Goldman Sachs 109 Jan-15 Fortress Cannon Bridge House Junior Loan CRE Loans UK Blackstone 36 Jan-15 Goldman Sachs Project Wagner CRE Loans Germany Otto Group 650 Jan-15 Iccrea BancaImpresa Industrial & Logistics REOs REOs Italy Beni Stabili 40 Jan-15 Llave de Oro Project Oro REOs Spain Goldman Sachs 90 Jan-15 Nationwide Marble Portfolio REOs UK Goldman Sachs 149 Jan-15 SAREB Project Aneto CRE Loans Spain Blackstone 237 Jan-15 SAREB Barcelona Office REOs Spain Inmobiliaria Colonial 10 Jan-15 Wells Fargo Helios Portfolio CRE Loans Germany BAML 60 Jan-15 Banca Popolare di Bari Banca Tercas & Banca Caripe NPLs CRE Loans Italy Lone Star 400 Jan-15 NAMA Project Boyne CRE Loans Ireland Deutsche Bank 287 Jan-15 NAMA Graham Harris London properties REOs UK Starwood Capital 278 Jan-15 NAMA UK loan portfolio CRE Loans UK Invel Real Estate Partners 189 Jan-15 RBS Project Herald REOs UK Heylo Housing / LCPF / Genesis HA / Fortis Living 135 Feb-15 Permanent TSB Project Leinster CRE Loans Ireland Deutsche Bank / Apollo 1,000 Feb-15 Permanent TSB Project Munster CRE Loans Ireland Deutsche Bank / Apollo 500 Feb-15 IBRC Project Pearl NPLs Resi Loans Ireland Mars Capital 406 Feb-15 Cassa di Risparmio di Cesana Northern Italian RE NPLs CRE Loans Italy HIG Bayside Capital 50 Feb-15 Natixis Park Inn Hotel NPL CRE Loans UK Kennedy Wilson 128 Feb-15 SAREB Residential Land REOs Spain Castlelake 13 Feb-15 SAREB Boadilla Residential Land REOs Spain Castlelake 13 Feb-15 Staalbankiers Dutch Residential Portfolio REOs Netherlands Round Hill Capital 98 Feb-15 UniCredit UCCMB Secured loans CRE Loans Italy Fortress/Eurocastle 1,200 Feb-15 UniCredit Levia Portfolio REOs Italy Cerberus 300 Feb-15 Danske Bank Project Griffin 1 CRE Loans Ireland Bank of Ireland 274 Feb-15 Danske Bank Project Griffin 2 CRE Loans Ireland Goldman Sachs 266 Feb-15 Starwood Capital Garda HQ Dublin REOs Ireland Hibernia REIT 70 Feb-15 NAMA Tara Collection - Facebook HQ REOs Ireland DZ Bank 232 Feb-15 NAMA Tara Collection - Alexandra House REOs Ireland Irish Life 34 Feb-15 NAMA Tara Collection - One Grand Canal Parade REOs Ireland Credit Suisse 18 Feb-15 NAMA Tara Collection - Lower Leeson Street REOs Ireland Jones Engineering 11 Mar-15 Lone Star Dublin Office Pool REOs Ireland Starwood Capital 350 Mar-15 Banco Sabadell Project Cadi CRE Loans Spain PIMCO 240 Mar-15 Catalunya Banc Vilamoura REOs Portugal Lone Star 500 Mar-15 Citigroup Enel CRE loan CRE Loans Italy TPG 220 Mar-15 IBRC Meir 23, Antwerp REOs Belgium GH Group 35 Mar-15 IBRC Centre Etoile & Louise 165, Brussels REOs Belgium Ghelamco Invest 24 Mar-15 ING Group Project Ogon CRE Loans Netherlands Apollo 100 Mar-15 ING Group Dutch CRE loans CRE Loans Netherlands Apollo 50 Mar-15 Sofigeco Italian Residential NPLs Resi Loans Italy PVE Capital 408 Mar-15 Kildare Partners Le Meridien hotel - Munich REOs Germany Deka 158 Mar-15 Permanent TSB Capital Home Loans & servicing platform Resi Loans UK Cerberus 3,500 Mar-15 NAMA Plum Portfolio REOs Ireland Marathon Asset Management 116 Apr-15 BBVA Barcelona student residencies REOs Spain The Student Hotel -Apr-15 Citigroup Spanish mortgages Resi Loans Spain Apollo 371 Apr-15 Citigroup German retail mezzanine loans CRE Loans Germany BlackRock 100 Apr-15 Citigroup German retail mezzanine loans CRE Loans Germany Highbridge Principal Strategies 70 Apr-15 Co-operative Group Priory Centre, Dartford REOs UK Tristan Capital / Ellandi 45 Apr-15 GE Capital GE Capital CRE Performing Loans CRE Loans UK & Germany Blackstone 677 Apr-15 RBS MAC Property REOs Germany Och-Ziff 155 Apr-15 RBS German Mixed-use Portfolio REOs Germany Apollo 60 Apr-15 AIB Cornerstone Portfolio REOs Ireland Davidson Kempner 115 May-15 RBS Project Coney CRE Loans Ireland Sankaty 465 May-15 RBS Project Rathlin CRE Loans UK Cerberus 1,890 May-15 RBS / HSBC / Nationwide Project Spring REOs UK Varde Partners 186 May-15 RBS Risanamento office portfolio REOs Italy Goldman Sachs 80 May-15 NAMA Windsor House REOs UK Hastings Hotels 9 May-15 FMS Project Gaudi CRE Loans Spain Oaktree Capital 604 May-15 Bankia Project Commander CRE Loans Spain Sankaty 560 May-15 CGD Vale do Lobo stake REOs Portugal Sheikh Al Jaber 300 May-15 Financial Institution Pioneer Point NPL CRE Loans UK Kennedy Wilson 201 May-15 Kildare Partners Le Meridien Parkhotel - Frankfurt REOs Germany Art-Invest Real Estate 40 May-15 NAMA Crystal Collection – Metropole Hotel Cork REOs Ireland Philip Hotel Holdings 5May-15 NAMA Crystal Collection – Johnstown House REOs Ireland Unknown 7May-15 NAMA Crystal Collection – Fels Point Hotel REOs Ireland Henggeler Family 4May-15 NAMA Crystal Collection – Maldron Wexford REOs Ireland Dalata 4Jun-15 NAMA Crystal Collection – Killeshin Hotel REOs Ireland Pat McDonagh 3Jun-15 Commerzbank Project Sun CRE Loans Germany Oaktree Capital 752 Jun-15 Commerzbank Project Parrot - PLs CRE Loans Europe JP Morgan 1,467 Jun-15 Commerzbank Project Parrot - NPLs CRE Loans Europe Lone Star 733 Jun-15 Citigroup Excelsia Nove Debt CRE Loans Italy TPG 200Jun-15 Bankia Project Castle CRE Loans Spain Davidson Kempner / BAML 383 Jun-15 Bank of China Grosvenor House Hotel Loan CRE Loans UK Reuben Brothers 412Jun-15 SAREB Calle Velaquez Office REOs Spain Axiare Patrimonio 51 Jun-15 Propertize Dutch Office Portfolio REOs Netherlands Goldman Sachs 60 Jun-15 DUTB / Bawag Istrabenz loans CRE Loans Slovenia York Capital 156 Jul-15 LBG Project Poseidon - PLs CRE Loans Ireland Bank of Ireland 200 Jul-15 LBG Project Poseidon - NPLs CRE Loans Ireland & UK CarVal / Goldman Sachs 3,500 Jul-15 RBS Project Finn - CRE Loan Tranche CRE Loans Ireland Deutsche Bank / Apollo 1,535 Jul-15 RBS Project Finn - Resi Loans Tranche Resi Loans Ireland Cerberus 741 Jul-15 RBS Project Finn - SMEs Tranche SME Ireland Sankaty 300 Jul-15 NAMA Project Maeve CRE Loans Ireland Deutsche Bank 786 Jul-15 NAMA Project Arch CRE Loans Ireland Deutsche Bank 608 Jul-15 Permanent TSB Project Connacht CRE Loans Ireland CarVal 481 Jul-15 NAMA Project Albion CRE Loans UK Oaktree Capital 305 Jul-15 Rabobank / RBS Project Trinity REOs Ireland Chartered Land 170 Jul-15 Bankinter 300 Residential Units REOs Spain Elliott Managament 60 Jul-15 Banco Mare Nostrum Project Pampa Resi Loans Spain Ellington Management 160 Jul-15 Banco Mare Nostrum Project Coronas CRE Loans Spain Apollo 100 Jul-15 GE Capital Germany Offices & Loans CRE Loans Germany Kildare Partners 740 Jul-15 NAMA Harvest Portfolio REOs Ireland Avenue Capital 40Jul-15 ING Group 26 Rios Rosas REOs Spain M&G 175 Jul-15 CaixaBank Project Tourmalet Resi Loans Spain Blackstone 800


JANUARY 2016



LIVE RE LOAN & REO SALESCurrently tracking €16.3bn of live transactions

CLOSED RE LOAN & REO TRANSACTIONS 2015 (cont.)


DATE VENDOR PROJECT TYPE COUNTRY BUYER FACE VALUE €MJul-15 Bankia Project Wind - Mast Portfolio Resi Loans Spain Oaktree Capital / Chenavari 918 Jul-15 Bankia Project Wind - Board Portfolio CRE Loans Spain Oaktree Capital 178 Jul-15 NAMA Millennium Park REOs Ireland Tetarch Capital 36Jul-15 UniCredit Italian REOs CRE Loans Italy Cerberus 205 Jul-15 Lone Star Rivas Futura REOs Spain Credit Suisse 52 Jul-15 Staalbankiers Dutch CRE Loans CRE Loans Netherlands Achmea Bank 364 Jul-15 Staalbankiers Dutch Residential Loans Resi Loans Netherlands Achmea Bank 693 Jul-15 LBG Lough Erne Resort REOs UK Vince Avenue / Tru Hotels & Resorts 11 Aug-15 NAMA Crystal Collection – Glenroyal Hotel REOs Ireland Comer Group 11Aug-15 IBRC Riverside One Stake REOs Ireland IPUT 81 Aug-15 FGH Bank Project River CRE Loans Netherlands Attestor Capital 250 Aug-15 Van Lanschot Project Lucas CRE Loans Netherlands Cerberus 400 Aug-15 SAREB GAL and Via Complutense Land REOs Spain Turnstone Corporate 14 Aug-15 Grupo Cooperativo Cajamar Spanish NPLs CRE Loans Spain Cerberus 400 Aug-15 Santander Four Madrid Offices REOs Spain Oaktree Capital 40 Aug-15 SAREB Two Residential Plots REOs Spain Grupo Insur -Sep-15 NAMA Crystal Collection – South Court Hotel REOs Ireland GN Asset Management 2Sep-15 NAMA Project Jewel CRE Loans Ireland Allianz Real Estate / Hammerson 2,570 Sep-15 Bank of Ireland National Portfolio REOs Ireland Davidson Kempner 170 Sep-15 Helaba Project Aurora CRE Loans Germany Cerberus 250 Sep-15 Aviva Project Churchill CRE Loans UK Lone Star 3,645 Sep-15 Finangeste Portuguese Secured Loans CRE Loans Portugal HIG Bayside Capital 110 Sep-15 CaixaBank Project More CRE Loans Spain Cerberus 780 Sep-15 Unknown UK Residential Mortgages Resi Loans UK Metro Bank 464 Oct-15 NAMA Hazel Portfolio REOs Ireland York Capital / Clarendon Properties 115 Oct-15 Ibercaja Banco Project Goya CRE Loans Spain Oaktree Capital 900 Oct-15 UniCredit Great Beauty Portfolio REOs Italy Morgan Stanley / Poste Vita 230Oct-15 NAMA Project Arrow CRE Loans Ireland Cerberus 6,252 Oct-15 Santander Hyde Group Social Housing Loan Resi Loans UK Legal & General 203 Nov-15 Banco Sabadell Project Chloe CRE Loans Spain Sankaty 800 Nov-15 GE Capital UK Home Lending Mortgages Resi Loans UK Blackstone / TPG / CarVal 5,130 Nov-15 Fortress Operation Coast - Secured loans Resi Loans Spain Elliott Managament 252 Nov-15 RBS Bloomfield Shopping Centre REOs UK Tristan Capital / Ellandi 73Nov-15 NAMA Elm Park REOs Ireland Starwood Capital 200 Nov-15 Banco Sabadell 67-69 Avenue Victor Hugo REOs France La Francaise 130Nov-15 UKAR Granite Mortgage Portfolio Resi Loans UK Cerberus 13,392 Nov-15 UKAR NRAM Loans (from Granite portfolio) Resi Loans UK TSB Bank 4,455 Nov-15 HSH Nordbank Spring Property Portfolio REOs Netherlands M7 Real Estate 60 Nov-15 UniCredit Project Sandokan CRE Loans Italy PIMCO / GWM 1,200 Nov-15 NAMA / RBS Dublin 3.7 Acre Site REOs Ireland Ronan Group 200 Nov-15 Coventry Building Society UK Buy-to-let Mortgages Resi Loans UK TwentyFour Asset Management 419 Dec-15 RBS Project Clear CRE Loans Ireland Cairn Homes / Lone Star 2,000Dec-15 NAMA Pentagon Centre REO UK Ellandi / Bridges Ventures 58Dec-15 Bank of Ireland Project Lanyon REOs UK Davidson Kempner 68 Dec-15 RBS Project Door CRE Loans Italy BAML 100Dec-15 CaixaBank Project Atalaya CRE Loans Spain TPG / Goldman Sachs 900 Dec-15 Deutsche Bank Italian Residential & Commercial RE NPLs Resi & CRE Loans Italy Algebris Investments 172 Dec-15 Propertize Project Dolphin CRE Loans Netherlands Goldman Sachs 224 Dec-15 NAMA Tallaght Cross West Apartments REOs Ireland Ires REIT 83 Dec-15 NAMA One Spencer Dock REOs Ireland Hines 240 Dec-15 Erste Group Banca Comerciala Romana CRE Loans Romania Deutsche Bank 1,200 Dec-15 Morgan Stanley / Prelios ICR 8 Italian NPLs CRE Loans Italy PVE Capital 157 Dec-15 Lone Star Project Randolph CRE Loans UK Tristan Capital 203

VENDOR PROJECT TYPE COUNTRY FACE VALUE €MNAMA Project Lee CRE Loans Ireland 350 Goldman Sachs Project Tristan CRE Loans Germany 800 CaixaBank Project Eurostars REOs Spain 103 NAMA Project Slaney REOs Ireland 100 ING Group Eurocommerce Loans CRE Loans Netherlands 100 BBVA Project Otelo REOs Spain -BBVA Project Zafiro REOs Spain 150 Santander Project Formentera CRE Loans Spain 170 ING Group Project Isabella CRE Loans Spain -ING Group Project Julieta CRE Loans Spain 371 Ibercaja Banco Project Kite REOs Spain 800 Goldman Sachs / NAMA / Hines Spencer Dock Block R REOs Ireland 90 Rabobank De Rotterdam Towers REOs Netherlands 400 Intesa Sanpaulo PBZ Portfolio CRE Loans Croatia 200 BBVA Project Liceo CRE Loans Spain 70 SAREB Project Vega CRE Loans Spain 180 SAREB Project Silk CRE Loans Spain 400 NAMA Liffey Portfolio REOs Ireland 58 EAA Project Orange Resi Loans Germany 1,080 SAREB Project Macarena Resi Loans Spain 410 FMS Project Samba CRE Loans Germany 230 Eurobank Bancpost NPLs CRE Loans Romania 65 Bankia Project Big Bang REOs Spain 4,231 SAREB High value asset NPLs CRE Loans Spain 800 SAREB NPLS backed by Hotels, Warehouses & Retail CRE Loans Spain 200 Propertize Project Triple+ CRE Loans Netherlands 140 Portuguese Bank Project Andorra CRE Loans Portugal -Kildare Partners Triple Portfolio REOs Germany 150 Hypo Tirol Bank Project Golden Roof CRE Loans Italy 364 FGH Bank Project Rembrandt CRE Loans Netherlands -Blackstone Project Webb REOs UK 290 Banco Mare Nostrum Project Stream - Developer Loans CRE Loans Spain 160 Banco Mare Nostrum Project Stream - REOs REOs Spain 140 AIB Project Forge CRE Loans UK 743 AIB Project Hurst Resi Loans UK 173 Intesa Sanpaolo Proejct Rosemary CRE Loans Romania 287RBS Junction One & The Outlet REOs UK 81 RBS Project Detroit CRE Loans UK 810 NAMA Cashel Shopping Centre REOs Ireland 7 Banco Sabadell Project Empire REOs Spain 600 GE Capital Project Zagato Resi Loans Spain 600 EAA Project Botticelli CRE Loans Italy 350

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Cushman & Wakefield Copyright 2015. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). AS APPLICABLE, WE MAKE NO REPRESENTATION AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) IN QUESTION.

Federico MonteroPartner, Head of Loan SalesEMEA Corporate Finance+44 (0) 20 7152 5369 [email protected]

Luka JevnikarAssociateEMEA Corporate Finance+44 (0) 20 7152 [email protected]

Siôn OwenSenior AnalystEMEA Corporate Finance+44 (0) 20 7152 [email protected]

James WebsterAnalystEMEA Corporate Finance+44 (0) 20 7152 [email protected]

Kuran Aujla AnalystEMEA Corporate Finance+44 (0) 20 7152 [email protected]

For more information about Cushman & Wakefield Corporate Finance Loan Sales, contact:

Documents

European RE Loan & REO Sales Market Q4 2015_Amended 26 Jan 2016