CB Richard Ellis Group, Inc. last week announced the expansion of its loan servicing business to Europe, targeting portfolio lenders as well as the fast-growing European commercial mortgage backed securities (CMBS) market.
CB Richard Ellis is a major player in the U.S. loan servicing market via its subsidiary, L.J. Melody & Co. Melodyâs joint venture with GE Commercial Finance Real Estate, GEMSA Loan Services LP, serviced a commercial mortgage loan portfolio of approximately $60 billion as of December 31, 2004, one of the largest in the U.S.
GEMSA serves more than 90 portfolio lenders and 150 securitized pools, and has top ratings from Fitch and Standard & Poors.
"Our market opportunity for loan servicing is enhanced by the growing popularity of CMBS in Europe, particularly in the United Kingdom," said Brian Stoffers, Executive Managing Director and Chief Operating Officer of L.J. Melody. "We believe now is the opportune time to extend into Europe the exceptional level of expertise we have developed in the U.S. market."
European CMBS issuance has grown at a compound annual rate of 44% since 1999, according to Macquarie Capital Partners, a leading international financial services firm. Some industry estimates forecast $35 billion of CMBS issuance in Europe in 2005, up from $24 billion in 2004.
Source: CB Richard Ellis