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EMEA syndicated Real Estate finance loan volumes for H1 2015 highest since H1 2008 Print E-mail
Friday, 31 July 2015

The volume of EMEA syndicated real estate finance loans totalled EUR27.6 billion (75 deals) in H1 2015 – the highest first half volume since 2008, which had seen EUR23.8 billion (89 deals) – according to the second post-crisis set of league tables for syndicated commercial real estate (CRE) lending across EMEA, released by Dealogic. The deal count was 5% to 6% higher than in H1 2014.

When lending to REITs is excluded, the total value of transactions reported was EUR13.4 billion, 3% lower than the equivalent figure for H1 2014, although at 54 the number of deals was 35% higher than in H1 2014.  The UK was the largest national market, with a 31% share of the total.  Overall, the impression is of a healthy market with good levels of activity.

HSBC, BNP Paribas, Credit Agricole CIB and JP Morgan topped the categories for H1 2015.  Other firms to have performed strongly compared to 2014 are Citi, Lloyds, RBS and Santander.

Syndication is a valuable tool for originators, allowing them to manage balance sheet capacity and capital constrains efficiently.  In turn, it allows a wide range of lenders to participate in loans they didn’t originate themselves.  Overall, syndication facilitates the effective flow of credit to the real economy, supporting investment in the built environment and transactional activity in the real estate market.

With CRE loan syndication markets attracting a great deal of liquidity since European property markets began to recover, these league tables provide a useful stock-take of activity which will become more valuable as the series becomes established and allows trends to be tracked over time.

Stuart Perry, Head of Leveraged & Asset Finance Syndicate Loan Syndications, BNP Paribas, said:

“The last 12 months have seen our Real Estate Finance franchise go from strength to strength, as our focus on our core clients and good structuring pays dividends despite the ever increasing competition in the market. Increasing transparency in the loan market is assisting our efforts to provide a platform with greater depth and liquidity, thus allowing potential investors to have greater confidence in entering the market.”

Matt Webster, Global Head of Real Estate Finance at HSBC, said:

“The efficiency of the European real estate syndicated loan market has continued to gather pace, as evidenced by the volume of transactions this year.  The increased market transparency provided by these league tables is bringing more finance parties to the market as they feel more comfortable in their market understanding and recognise the benefit of the information flow.  Further growth in market participation should benefit borrowers and lenders alike."

Peter Cosmetatos, chief executive of CREFC Europe, said:

“It’s great that people are finding the time to report their transactions for the league tables in what is clearly a very busy market.  As reporting continues to improve and the time series builds up, the league tables should become ever more interesting and valuable for market participants and observers alike.”  

 

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