Sales of distressed real estate are down 39% on the volume seen in
Europe last year, according to research by Evercore Real Estate Portfolio
Solutions.
The firm’s latest European Distressed Real Estate Market report
has recorded €24.4bn of transactions so far in 2016.
A review of 59 major European banks and asset management agencies
found an estimated €462bn of exposure to non-core real estate in Europe.
More than €189bn is invested in Spain. SAREB, the Spanish
government-owned ‘bad bank’, accounts for 45% of distressed assets held by
European asset management agencies.
Transaction volumes have been boosted by Propertize and NAMA
following their respective sales of Project Swan and Projects Emerald &
Ruby.
Around €18.7bn of live transactions and €40.2bn of planned
transactions are expected to fuel closed volumes towards the end of 2016 and
the start of 2017.