GE Real Estate has teamed up with Pirelli RE and Calyon to acquire a EUR 2.6 bn portfolio of non-performing loans (NPL) originated by Banca Antonveneta and its subsidiary Interbanca. GE is buying a 50% stake in the portfolio, while Pirelli RE is taking a 16.5% interest through its joint venture with Calyon (67%- Pirelli RE 33%). Some 65% of the total acquisition price of EUR 530 mln will be financed with senior debt from Royal Bank of Scotland. Calyon is arranging mezzanine debt (subscribed by the buyers) and equity for the rest.
GE Real Estate has teamed up with Pirelli RE and Calyon to acquire a EUR 2.6 bn portfolio of non-performing loans (NPL) originated by Banca Antonveneta and its subsidiary Interbanca. GE is buying a 50% stake in the portfolio, while Pirelli RE is taking a 16.5% interest through its joint venture with Calyon (67%- Pirelli RE 33%). Some 65% of the total acquisition price of EUR 530 mln will be financed with senior debt from Royal Bank of Scotland. Calyon is arranging mezzanine debt (subscribed by the buyers) and equity for the rest.
The portfolio comprises over 20,000 loans covering a wide range of mixed commercial, corporate and real estate assets across Italy. Pirelli Real Estate will service the portfolio and act as asset manager.
This was GE's third acquisition of a non-performing loan portfolio in Italy over the last 18 months. The company has now a total exposure of over EUR 5 bn of gross book value in loans.
The deal raises the gross book value of non-performing loans managed by Pirelli RE to EUR 12 bn (about EUR 2.7 bn at net book value). The company announced it intends to open another three offices alongside its existing seven offices as it expects this area of business to grow in 2008. It is focusing on the Northeast of Italy, Germany and Central and Eastern Europe - particularly Poland.
