Bloomberg News

Banks May Sell $26 Billion of European Property Loans, CBRE Says

February 22, 2012

Feb. 21 (Bloomberg) -- European bank sales of property loans this year may exceed the 20 billion euros ($27 billion) sold in 2011 as lenders shrink their balance sheets and scale back credit to real-estate investors, CBRE Group Inc. said.

Loan disposals this year will “reach at least the same levels as 2011,” Natale Giostra, CBRE’s European head of debt advisory, said in an e-mailed statement. “Loan sales are a quicker solution for banks.”

About 13 billion euros of commercial-property loans are currently for sale, CBRE estimates. The main driver is an overhaul of bank-capital rules by the Basel Committee on Banking Supervision, known as Basel III, which is scheduled to start in 2015.

European financial institutions have had 529 billion euros in losses since the third quarter of 2007, when the subprime mortgage crash triggered the global credit crisis, according to data compiled by Bloomberg.

--Editors: Christine Maurus, Pierre Paulden

To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net


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