European Banks Seeking Safety Lose Property-Loan Share

European banks are losing market share to new commercial-property lenders in the region as investors take on greater risk and banks repair their balance sheets to meet stricter capital regulations.

Alternative lenders including insurance companies, private equity and debt funds now account for 40 percent of the 182 credit providers in Europe, up from 16 percent in the first quarter of 2012, according to a report today by Cushman & Wakefield Inc.’s. corporate finance unit. Demand for superior returns has led more lenders to Spain, Portugal and Italy, the New York-based broker said.