German real estate lender Aareal Bank has purchased a 20% stake in pan-European loan servicing firm Mount Street to support and grow its credit and syndication processes.
The London-based company specialises in servicing and credit management, particularly for commercial property. Aareal Bank said it sought to further develop its syndication business with banks and insurance companies with the help of Mount Street products. The terms of the transaction were not disclosed.
'With this investment in Mount Street we consistently implement our 'Aareal 2020' programme for the future,' explains Hermann Merkens (pictured), chairman of the management board of Aareal Bank. 'In line with our strategy, we continue to expand our business along the commercial property finance value chain. At the same time, we secure our access to innovative technologies and a rapidly growing market.'
The majority of the company will still be owned by Mount Street's management. As part of the deal, Aareal Bank Group has agreed to examine the use of Mount Street's credit management software CLC (Clareti Loan Control) at group level.
Mount Street and Aareal Bank said that they expected the demand for services in the areas of credit management and servicing in Europe to increase considerably in the coming years. Within the partnership's framework, Mount Street said it planned to further expand its business relationships in the banking and insurance sectors.
Mount Street currently offers loan services in 18 European countries, and manages more than €26 bn in property loans for approximately 175 global investors, sponsors and lenders. In addition, Mount Street recently announced its acquisition of EAA Portfolio Advisors (EPA) which will add a further €29 bn to its assets under management when regulatory approvals are received.
Aareal Bank is one of the leading real estate financiers in Germany with a loan book of €30 bn at end-June 2016. The company generated €4.4 bn of new loans in the first half of 2016 and its target for the full year is €7-8 bn.
