Opportunistic investor Bayside Capital has acquired its first non performing loan portfolio in Italy and is about to close its third Dutch deal with joint venture partner M7 Real Estate.
Bayside bought the NPLs, with a €40m face value, from Banking Group Cassa di Risparmio di Ravenna. The assets are secured against a mix of apartments, coastal residences and commercial coastal property located mainly in the regions of Ravenna and Bologna.
The business plan for the portfolio is a combination of repossession and reworking some of the assets.
UK director and loan expert Chris Zlatarev led the deal, which was structured as a new private securitisation partly in order to avoid tax charges. It was brought to Bayside by Fare NPL – elected its servicing partner in Italy.
Said UK managing director Ahmed Hamdani: “We believe Italy presents excellent value and we are already working on further transactions in the market”. Bayside’s Milan office is led by Raffaele Legnani, soon to be joined by another team member.
The group has also completed deal no.2 in the Netherlands with M7 and is near to closing a circa €34m third, taking ‘MBay Netherlands” total investment to over €100m.
Its first transaction took place last November, when the JV bought 12 multi-let industrial assets for €36m from three mandates managed by Valad Europe, including one for AXA. The deal was financed with 5% debt from Starwood Capital. In April this year it bought circa €30m of light industrial properties in the Randstadt area.