Aareal Hypotheken-Management GmbH (AHM), Mannheim, has taken over the servicing of a real estate loan portfolio worth billions for an American investor in non-performing loans (NPL).
The introduction of a SAP-based current account for the client also brought its own particular challenge. Among other items, this module requires the mapping of buyer master accounts and property developer financing, which are constituents of the portfolio. The entire high volume, complex transfer project was implemented on schedule in less than three months. The servicing activities have already been initiated.
With this new client relationship, AHM is expanding its original client base of banks and insurance companies to also include Private Equity companies, whilst extending its product service range to cover non-performing loans.
Under this transfer project, complex syndicated loans and foreign currency loans have been migrated alongside current accounts for the first time. "We have once again demonstrated that we are capable of handling migration projects professionally and in a standard format, on a virtually routine basis", says Alexandre Janicki, the company's Managing Director. "We offer support to investors who do not have their own infrastructure, or do not wish to create one. Investors of non-performing loan portfolios especially appreciate speed, a broad product range and autonomy, which is precisely what we can provide."
The new client is a subsidiary of an American Private Equity company which focuses on the NPL segment. Similarly to all ten AHM clients, it has full access to its own loan portfolio through the AHM core systems, including the electronic folders. AHM undertakes partial processing solutions for the new client, which means specific duties such as account maintenance, loan accounting, processing payments, defined credit processes and reporting for the loans within the portfolio that have not yet been called in.
Source: Aareal Bank