Situs Group has purchased rival debt advisory Hatfield Philips International (HPI) from Starwood Property Trust for an undisclosed sum.
The acquisition of HPI will propel Situs to one of the largest loan servicing and NPL loan management firms in Europe with over €145 bn in combined assets under management globally.
'The European market is a dynamic and exciting place for debt servicers currently as banks continue to deleverage their balance sheets amidst regulatory pressure, and new market entrants rush to deploy equity and debt products into Europe,' commented Steve Powel (pictured), CEO of Situs. 'The acquisition of HPI is another milestone in our ongoing European expansion, and expands our professional capabilities in the performing and non-performing debt space now across 16 European jurisdictions.'
As part of the transaction, Starwood Property Trust, an affiliate of Starwood Capital Group, will retain a non-controlling minority interest in Situs.
The last few years have seen Situs grow its business in Europe and the US with select acquisitions. In Europe, Situs acquired Merrill Lynch and Ocwen’s NPL special servicing business HQ in Germany in 2009, with €1.45 bn in NPLs and asset managed across Europe. In 2011, Situs created a joint venture with HSH Nord Bank to manage over €3.2 bn of commercial real estate loans in the Nordics, and in 2012 purchased Deutsche Bank’s Pan-European loan servicing and asset management business.
'We are pleased with the progress of HPI since we acquired it in 2013, and look forward to the platform’s growth under Situs’ leadership,' added Jeff Dishner, senior managing director and global head of real estate acquisitions at Starwood Capital Group.
'Joining Situs allows us to be a part of something special,' said Blair Lewis, CEO of HPI. 'HPI brings a premier platform of seasoned real estate underwriters and workout specialists to Situs’ market leading offerings. It is exciting to think about our new opportunities, as a combined platform.'
