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Loan Sale Case Study


Situs Quickly and Efficiently helps Client Exit Loan

European bank was able to exit challenging loan by leveraging Situs' underwriting as well as capital markets group to source buyers.

Challenge

Well-known German mortgage bank was seeking a solution for a Dutch sub-performing loan with a UBP of around €36 million. Borrower was unable to refinance his debt (CRE portfolio with eight office and four warehouse properties in The Netherlands). An interim insolvency administrator had been appointed due to the unwillingness of the borrower to co-operate with the lender.

Situs Solution

Mortgage bank contacted Situs regarding sale of the loan. Situs engaged in a comprehensive asset and loan valuation and recommended 25 potential investors of whom more than 80% were located in United Kingdom and United States. Of the 25, 15 investors signed an NDA and six submitted bids. Situs reviewed the bids and selected the most promising for an exclusive deal which was accepted, signed and closed by mortgage bank.

Benefit for the client

Mortgage bank was able to exit bad loan sooner than expected with [minimal legal wrangling] and zero loss to reputation. Situs’ well-defined sales process with a clear time frame was very useful to the client. Mortgage bank also connected with a new partner with whom they have continued to do business.