European trio buy Romanian loan portfolio

European trio buy Romanian loan portfolio

European private equity firm, AnaCap Financial Partners (AnaCap), HIG and Deutsche Bank, have acquired a €495m portfolio of non-performing and sub-performing loans from Volksbank Romania.

The portfolio of 3,566 loans in total is backed by a mix of primarily residential, commercial real estate and development land. APS Romania will be appointed as master servicer.

“The portfolio is backed by a wide variety of real estate assets, requiring a range of resolution strategies,” said Justin Sulgar, head of credit opportunities at AnaCap.

Under terms of the agreement, funds advised by AnaCap will jointly acquire the entire portfolio with HIG and Deutsche Bank.

The transaction is the largest of its kind in Romania to date, and came about as a result of the ongoing pressure on financial institutions across Europe to restructure in order to comply with new capital requirements.

After a prolonged correction following the financial crisis, the property market in Romania is now showing strong signs of improvement.

GDP and unemployment have recovered on the back of labour market reforms in 2011 and an IMF financing package.

House prices, which declined 38% since their peak in 2008, are now on the rise, with the areas surrounding central Bucharest and other main cities increasing 4% in 2013.

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