According to the DTZ Global Debt Funding Gap report, released earlier this month, the European Banking Authority's (EBA) Basel III regulation will contribute to a doubling of Europe's debt funding gap over the next two years to around 145 billion (US$182 billion), despite the emergence of new non-bank lenders in the region.
Responding to the research's findings Ralph Winter, Chairman and Founder of CORESTATE Capital, commented: "This research confirms the developments we are seeing play out in the market and from our own interaction with banks. The funding gap continues to widen, even in core European markets, such as Germany and France, despite an increase in capital allocation to these countries.
"As a result, many existing non-performing property portfolios will require professional asset management to bring them back to profitability even if acquired at significant discounts. This underpins our belief that the markets will present an increase in opportunities in the near future.
"We are following up on our ongoing research cooperation with the European Business School with a second research paper, which will provide a more detailed analysis of debt provision and its consequences for real estate markets and different asset classes. We thereby aim to contribute appropriate solutions to the current challenges that the credit and property markets face."
Source: FTI Consulting