CBRE Expands Loan Servicing To Europe

LOS ANGELES-CB Richard Ellis Group Inc. hopes to capitalize on the growing demand for loan servicing in Europe that is being created by greater activity in commercial real estate financing in general as well as the fast pace of growth in the European CMBS market. The company sees potential in servicing both for portfolio lenders and for CMBS lenders, especially in the United Kingdom.CBRE hopes to parlay its expertise and reach in US loan servicing to the European markets, according to Brian Stoffers, executive managing director and chief operating officer of L.J. Melody & Co., the CBRE entity that is a major player in the US loan servicing market. Stoffers cites "the growing popularity of CMBS in Europe, particularly in the United Kingdom."L.J. Melody & Co.'s joint venture with GE Commercial Finance Real Estate, GEMSA Loan Services LP, serviced a commercial mortgage loan portfolio of approximately $60 billion as of Dec. 31, 2004, one of the largest in the US. GEMSA serves more than 90 portfolio lenders and 150 securitized pools, and has top ratings from Fitch and Standard & Poors. Industry forecasts estimate up to $35 billion of CMBS issuance in Europe in 2005, up from $24 billion in 2004 and rising steadily since the European CMBS market began to take off in 1999.The European CMBS market trails the US market primarily because the US has such a large head start, industry reports say, but with investor interest rising in European commercial properties the market has the potential to grow quickly. A report last year in one of GlobeSt.com's sister publications, Debt & Equity Journal, noted that the European CMBS market has grown largely through the support of European investors, but there is potential for US investors to boost the market as well. The availability of floating-rate terms is helping the European CMBS market, the Debt & Equity Journal said.