Global Debt Sales survey 2012 - Vastgoedjournaal

COMPLETING TRANSACTIONS5%Of the transactions in this survey werecompleted with vendor financethat allows buyers and sellers to share the upside. Wealso expect to see an increase in vendor finance, whichin our survey accounted for just 5 percent of deals.There are regulatory constraints in some major marketsthat are blocking vendor-financed deals. In Spain, forexample, if a seller retains a 25 percent equity interestor provides vendor finance for 25 percent of the valuethen Banco de España will say that the risk has notbeen sufficiently reduced or eliminated and will notallow the assets to be deconsolidated from thevendor’s accounts.German buyer“Those banks which have beenreluctant to write-off bad debt andhave kept it on their balance sheetfor longer will come under pressureto clear out their books.”German consumer debt seller“Prices for consumer debt will not reach2006 levels but there is still plenty ofroom for upside. Prices should increaseuntil demand declines.”Spanish seller“In terms of secured loans the remainingprice gap will start to narrow, due to the newprovisions law which was passed this year, anddue to investors’ expectations on collateral priceevolutions being more in line with the sellers.”UK consumer debt seller“We have seen a shift from smaller ‘business asusual’ sales to balance sheet driven decisions, andwith this comes fewer, larger, structured sales.”© 2012 KPMG International Cooperative (“KPMG International”), a Swiss GLOBAL entity. DEBT SALES SURVEY 2012 19