Colliers International, leader in real estate debt counseling, and Intermoney Titulización, investment services company of the CIMD Group, have joined capabilities to offer an innovative financial service to the real estate and investor sector: the securitization of portfolios of Non Performing Loans (NPLs) and foreclosed assets (REOs).
The new service, provided jointly by Colliers and Intermoney, is aimed at the real estate debt market. A market close to 300 billion euros, in the hands of financial institutions, investment funds and SAREB, which is the second largest in Europe, just behind Italy.
The securitisation of those known as NPAs (Non Performing Assets), which includes both unpaid loans (NPLs) and foreclosed assets (REOs), provides for the transformation of both into liquid financial assets that can be acquired for a much broader base of potential investors, including insurers, pension funds or institutional funds.
“On the one hand, from the supply side, this market has reached a certain degree of maturity, allowing the owners of these assets a greater portfolios optimisation, both in their configuration and in their management, thus achieving greater visibility on Its possible evolution. On the other hand, there is a wide unsatisfied demand among institutional investors looking for fixed-income financial products with investment grade, and those who expect moderate and sustained positive returns over time, this being the investor profile to which this product ”- affirms Javier Martín Banderas, Senior Advisor of Colliers.
“The sale of NPA’s portfolios, structured through securitisations, offers sellers quantitative and qualitative advantages over the traditional sale of these portfolios. Plus they facilitate the optimisation or improvement of the portfolio sale price, while on the other they allow the risk exposure of the portfolio to be completely deconsolidated, as it is a product without recourse, and all this without renouncing the potential increases in value to through its subsequent management. ”- concludes Álvaro Alonso, Managing Director of Colliers International.
Securitisation allows to increase the sale price of debt portfolios, transfer the risk of its assets and significantly expand the universe of investors with lower capital costs.
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About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success in our Instagram, Twitter or LinkedIn accounts.
