DebtX selling €213m German NPL portfolio
The Boston-based DebtX, which claims to operate the world’s most liquid marketplace for loans, is offering a €213m portfolio of non-performing residential and commercial real estate loans on behalf of a German institution. Indicative bids are due in on March 4th, with final bids being accepted on or before March 20th. The company said there was likely to be a steady stream of these new, smaller deals as banks and investors look to relieve pressure on their balance sheets.
According to Gifford West, head of international sales at DebtX, “European financial institutions are realising that smaller sales, such as this €213m real estate portfolio, are a natural complement to the very large transactions. Tactical sales are more manageable, close faster, and maximise proceeds. Institutions should choose more than one loan sales strategy to achieve their objectives. DebtX expects European institutions to execute an increasing number of loan sales of all sizes in 2014.”
Mr. West, who was a panel speaker at the recent REFIRE London Conference on the subject of distressed debt and the NPL Market, said that in addition to the sale in Germany, DebtX expects to be conducting more loan sales across Europe, including in Spain, the UK, Ireland, Italy, the Netherlands and France. Last year DebtX sold over $16bn of loans, while valuing loans amounting to more than $10 trillion (the company provides third-party loan valuation services for both public and private clients, along with analytics and all the data based on more than ten years of the company’s own secondary market loan sales.)
Among the largest loans that DebtX is offering in March are a €21.9m NPL relationship secured by a 9,700-sqm three-storey office building in Germany, a €19.9m NPL secured by a 10,777-sqm, three-store retail/apartment property, a €17m NPL secured by an 8,200-sqm office property in a single 4-storey building, and a €16.3m NPL secured by a 17,900-sqm market consisting of a two-storey terminal building with four three-storey office annexes and a separate storage building.