Global Debt Sales survey 2012 - Vastgoedjournaal

A globalperspectiveKPMG’s Portfolio Solutions Group is one of the world’s leading practices with aglobal footprint and specialists focused exclusively on key markets in Europe,Asia, Latin America and the US. Here members of the team analyze the keydevelopments in those markets.EUROPE Andrew JenkeDirector, Portfolio Solutions Group, KPMG in the UKEurope has certainly emerged as the key focus for thoseparties looking to take advantage of the recent credit andsovereign crises, and the bank deleveraging that has followed.Importantly, the deleveraging focus of European banks has verymuch been spread across different product types (such as CRE, PFIand residential mortgages), different geographies (from Australia toEcuador) and varying degrees of credit quality (from deeply distressed toinvestment grade).Deal activity, both for performing and non-performing loans, has been mostprevalent in Spain, the UK and Ireland, with over EUR600 billion of NPLson their balance sheets. Other markets continue to generate high profiletransactions and buyer interest, such as Portugal, Germany and Italy.Activity in the Spanish market has been steadily building for over 2 yearsnow, with the wave of primarily foreign private equity (e.g., Cerberus,Lone Star) and investment bank (e.g., Morgan Stanley, Deutsche Bank)buyers now having to compete with an increasingly sophisticated setof well funded servicing platforms. While the market rallied on theback of unsecured NPL transactions, real estate backed loan sales,both for residential and commercial, have become the focus for newforeign buyers stimulated by new provisioning rules, as shown by overEUR500 million of residential mortgage NPLs being sold within thefirst 6 months of 2012. Going forward, we expect the Spanish marketto continue to grow as banks really begin to tackle their commercialreal estate loan challenges and established buyersseek to feed local,recently built, machines.Ireland is a relative newcomer to the debt sale market and for thisreason banks and investors don’t have five years worth of bid/ask© 2012 KPMG International Cooperative (“KPMG International”), a Swiss GLOBAL entity. DEBT SALES SURVEY 2012 25