Pirelli RE and Calyon SA have announced the purchase of a portfolio of non-performing loans from Banco Popolare di Verona e Novara. The loans have a gross book value of approximately €195 million.
The transaction, which was completed at a price of approximately €112.5 million, implies the acquisition of mortgage loans issued to 1,507 private borrowers, with collateral consisting mainly of residential properties.
Since 2004 the portfolio has been managed by the former Servizi Immobiliari Banche S.p.A. (SIB), which later became Credit Servicing S.p.A. following its merger with Pirelli RE Credit Servicing S.p.A. at the beginning of 2006. The company manages court and out-of-court proceedings relating to properties, also making use of the Pirelli REs specialist service companies.
Pirelli RE was appointed by Banco Popolare di Verona e Novara to act as Advisor for the sale of the portfolio via a competitive auction. The mandate gave the Company the right to co-invest in the portfolio with the winning bidder, by taking up to a 35% interest, as well as the companys commitment to purchase the entire portfolio at the base price should the offers received not match the Banks expectations.
The base price was determined on the basis of a legal and technical analysis of the portfolio by Credit Servicing S.p.A. and the due diligence procedures carried out by Pirelli RE Agency.
Following the selection of Calyon SA, Pirelli RE exercised its right to co-invest in the portfolio based on the final sale price, acquiring a 33% interest.
With this latest transaction, the gross book value of the non-performing loans managed by Pirelli RE is approximately €3.2 billion (around €1.3 billion in net book value).
Source: Pirelli RE
