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Resolving Europe’s non-performing loan (NPL) problem is a priority for the banks in order to pave a way to improving profitability across the sector, an official from the European Central Bank (ECB) said in a speech yesterday.
Despite estimates that there are around €100 billion of non-performing loans in Greece and Cyprus, many investors say they will continue to stay clear of the region amid continued questions over foreclosure and enforcement procedures.
The deleveraging process in China is “progressing relatively slowly thus far” according to a report titled “Deleveraging, Destocking and Rebalancing”, authored by Hang Seng Bank acting chief economist Thomas Shik.
Kohlberg Kravis Roberts (KKR), the US alternative asset specialist, has teamed up with two Chinese partners to target credit and distressed opportunities in the Chinese market.
Cerberus Capital Management has won NAMA’s €6.25bn Project Arrow portfolio of real estate loans for around €800m. The US investor saw off Apollo Global Management for the portfolio, which NAMA, Ireland’s bad bank, acquired in 2010 and 2011.
Banks’ phase of deleveraging non-core legacy debt is at "the end of the beginning", not at "the beginning of the end", agreed panellists at Real Estate Capital’s Europe forum 2015. Based on an estimated £40 trillion of assets European banks have to de-lever, Ahmed Hamdani, managing director at HIG International Advisors, believed the sale of distressed debt still has a lot further to go.
HIG Capital has bought two Portuguese portfolios containing real estate assets and non-performing loans (NPL) worth over €110m from asset manager Finangeste. The two portfolios are comprised of 77 real estate assets and 114 secured loans.
An estimated €100bn of European loan portfolios will trade in 2015 and up to half of this could be real estate, according to PwC. Its annual market survey estimates that investors have €70bn of equity to spend, which combined with leverage, could fund significantly more deals this year. PWC expects portfolios with a face value of around €90-100bn to trade in 2015.
PVE Capital, a European credit investment firm, has bought a €408m portfolio of Italian non-performing loans, reports Private Debt Investor, our sister publication. The book comprises residential and commercial real estate loans, with the former making up around 75% of the assets, said Gennaro Pucci, founder of PVE Capital PVE raised a new credit fund from third-party investors in just two weeks in January to support the purchase from a small Italian private bank, Pucci said. He declined to say what the total size of PVE European Credit Fund I is but explained that it holds between 20% and 30% of the Italian NPL portfolio.
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