Iberian debt servicer Finsolutia has joined forces with Credito Fondiario to launch a platform focused on the management of Italian distressed credit facilities and real estate assets held by investors and financial institutions.
Iberian debt servicer Finsolutia has joined forces with Credito Fondiario to launch a platform focused on the management of Italian distressed credit facilities and real estate assets held by investors and financial institutions.
The new platform will provide a range of services including Special Servicing, REO Management and Disposal, Backup Special Servicing and Management of other Security Assets.
The partnership will leverage on Finsolutia’s experience in servicing and master servicing non-performing loans (NPLs) in the Spanish, Portuguese and UK markets, as well as on Credito Fondiario’s leadership in the Italian distressed and illiquid credit market, the two companies said in a statement.
Credito Fondiario, which was recently sold by Morgan Stanley to investors Tages and Harvip, currently manages over €4 bn of non-performing assets in Italy.
Founded in 2007, Finsolutia is based in Madrid and Lisbon, and currently manages €1.5 bn of performing and non-performing loans in the UK, Spain and Portugal.
As asset quality reviews put more pressure on banks’ recapitalisation plans, the non-performing loan market is witnessing increased activity in Italy. Earlier this month, asset manager Algebris Investments said it raised €370 mln from institutional investors and family offices for a new fund focusing on Italian non-performing loans.
The vehicle, known as Algebris NPL Fund I, will be registered in Luxembourg and target non-perfoming and sub-perfoming loans as well as a portfolio of loans owned by the country's financial industry.
Algebris, which is set to open an office in Milan headed by Massimiliano Bertolino and Alberto Iori, said the main focus will be on loans backed by real estate assets, which currently represent around 40% of the total NPLs in the country, amounting to almost €170 bn.
The vehicle is targeting a total of €400 mln with final closing planned for the end of April 2015. It has a life term of four years and is targeting returns of between 15% and 18% a year.
‘We believe that Italy will become one of Europe’s most dynamic investment markets in terms of NPLs, particularly in light of the results of the AQR and the stress test,’ Davide Serra, founder and CEO of Algebris Investments, commented at the time.
Also in October, international property services group REAG announced the launch of a new debt advisory services department in Italy with plans to expand the business to other European markets in the future.
The company, which is part of the Milwaukee-based American Appraisal group, has hired Unicredit Credit Management Immobiliare’s former managing director Diego Bortot to lead the new business unit, which will be based in Milan and will focus on advising clients on debt restructuring and loan servicing.
