German investor Publity has secured a five-year servicing contract for non-performing loans with a total value of €1.1 bn.
The portfolio comprises more than 1,100 real estate loans, most of them from major German banks, with an average debt of €1 mln. Publity will take responsibility for the processing and liquidation of the portfolios for an international investor.
Publity has 12 years' experience of acquiring and servicing NPLs and has targeted joint ventures in the sector with institutional investors as part of its core business strategy.
Thomas Olek, CEO of Publity, said: 'The NPL market has tremendous potential which we will exploit in future along with co-investments in German office real estate. This segment will continue to increase our growth and revenues in the years to come.
'We plan to take over the management of further NPL portfolios so we can profit from our long-standing expertise and strong connections in the banking and real estate industry.'
