Global Debt Sales survey 2012 - Vastgoedjournaal

Assets comingto marketSpain, the UK, the US and Ireland continue to be viewed by bothsellers and buyers as the countries with the highest potential fordebt sale transactions globally. Sales will be driven by non-coredisposals by big European banks, who have as much as EUR2.5 trillionof deleveraging to undertake. 8 We estimate that over EUR600 billion ofNPLs are sitting with UK, Irish and Spanish banks alone.Recent high-profile transactions in Germany include DeutscheWohnen buying the 23,500-apartment German BauBeCon portfoliofor EUR1.24 billion from Barclays. Deutsche Wohnen said theenterprise value implies a multiple of 13 and a price of EUR814 persquare metre. The deal is the fourth largest residential portfoliotransaction in the country this year, following Patrizia’s acquisitionof the EUR1.4 billion LBBW housing portfolio, TAG’s takeover ofEUR1.1 billion DKB Immobilien and Cerberus purchasing theEUR1 billion Speymill portfolio. On the debt side, Lone Star’sacquisition of the Excalibur loans from Bundesbank remainsthe largest distressed deal of 2012 in Germany. Outside thistransaction, corporate debt deals continue to be done onan asset-by-asset basis at the behest of the bank workoutteams.The pressure for asset sales in Spain is growing, and wewould expect to see EUR10 to 15 billion of transactionsover the next 12 months. This will be driven in no smallpart by the creation of either a centralized SpanishBad Bank or the requirement of individual banks tocreate separate vehicles to house their exposuresto Commercial Real Estate (CRE) and developerloans. Current estimates put the total exposureof Spanish Banks to CRE at EUR350 billion. Themain sellers will be Spanish banks, particularlythose that have merged, and foreign banks8 Morgan Stanley: European banks: What are the risks of €1.5-2.5trn deleveraging?, November 201114 GLOBAL DEBT SALES SURVEY © 2012 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity.