US firm aims to buy more servicing operations from retreating banks
Situs Asset Management will expand its servicing, asset management and advisory business model, following its acquisition of Deutsche Bank’s European commercial loan servicing business.
The US-owned company is seeking to take on servicing business that other banks may divest. Situs’s European head, Hugo Raworth, said: “Banks are focusing on core business and retaining a servicing platform is not part of that, especially with the limited CMBS market.”
Deutsche Bank’s decision to quit commercial real estate servicing in London follows Barclays Capital’s sale of its CMBS loan servicing business to Capita.
Situs wants to become a ‘one- stop-shop’ for institutions originating loans and investors in loan portfolios, covering everything from advising on due diligence to servicing. It has been appointed as loan servicer for Deutsche Bank’s German multi-family housing agency CMBS.
As well as servicing all of the CMBS loans in Deutsche Bank’s DECO conduit programme, plus other non-securitised loans originated by Deutsche Bank’s real estate team, Situs will help the bank to manage its balance sheet and pfandbrief book.
This will be done thorough Situs’s asset management arm, which is already involved in the work-outs of HSH Nordbank loans.
Deutsche Bank’s former seven-strong London-based team, led by Dan Boakes, make up the majority of Situs’s servicing group. They are now located at Situs’s office in the City and report to Raworth.
Situs has already made three appointments since the deal closed – two on the asset management side in London and one in its Copenhagen office.
The Situs Group was bought last October by US special servicer Helios AMC. Situs is now owned ultimately by Ranieri Partners, via a joint venture that also includes Deutsche Bank.
Ryan Smith, former manager of Situs’s London and Dublin offices, has left the group to join debt advisory boutique Rhino Capital Investment.