Spain is set to overtake Ireland as the destination of choice for investors who are prepared to take a risk on the market, according to a report released by international property advisers Cushman & Wakefield (C&W).
It estimates that European banks and asset managers are planning to either sell or restructure €584 billion of what has been described as “riskier property”as they clean up their balance sheets over the coming years.
According to C&W, Spain is looking to sell €200 billion worth of these assets and investors are well positioned to take advantage of the sale.
Transactions in the United Kingdom and Ireland accounted for more than half (63 per cent) of completed sales in the first half of 2014. However, Spain is catching up, having accounted for 29 per cent of sales in Q2.
The two biggest sellers of commercial property in the first half of the year were Irish-owned institutions, according to C&W.
IBRC, formerly known as Anglo Irish Bank, closed €17.2 billion in transactions. The National Asset Management Agency (NAMA) was in second place with €8.7 billion in sales.
C&W states that investor focus will not shift entirely to interests in southern Europe. Banks in the United Kingdom and Ireland have a combined exposure of €244 billion to non-core real estate. They will continue to play an important role in that market.
