Link Financial picks up Publity German non-performing loans

London-based servicer buys €213m portfolio as Publity auction “tests market”

German asset manager Publity has sold a portfolio of German non-performing real estate loans with a face value of €213m to Link Financial. Publity ran the secondary trade through loan auction platform DebtX. It received 23 indicative bids for both specific assets and the entire book,  from two German banks, two German funds, 15 institutional mostly – non-German – funds, three European banks and a Chinese party.

The portfolio comprises  six loans secured against commercial properties including offices and a retail/apartment building and one portfolio of granular residential mortgages with an €80m face value. German institutions comprise 80-90% of the original lenders on the loans. London-based Link Financial services a range of consumer and commercial performing, sub-performing and non-performing loans and also buys loans in partnership with investors.

The business has bought 1,300 distressed loan portfolios, secured and unsecured, in the UK, Germany, Spain and Italy. Leipzig-based Publity’s package was assembled from various portfolios over time. Serge Santos, Publity’s London-based head of business development, who joined from Värde earlier this year, said the secondary transaction was “a way to test the market”.

The company specialises in German commercial property and is in talks with two investors to be appointed to a managed account to invest up to €110m. In the US, DebtX is selling a fifth residential non-performing loan portfolio for the Department of Housing and Urban Development. The $4.8bn loan sale consists of two parts: about 23,200 loans totalling $4bn  in unpaid principal balance  in 16 pools, collateralised by properties across the US;  and 4,800 ‘Neighborhood Stabilization Outcome’ loans, totalling $800m, across regions  among the hardest hit by the housing crisis.