London-based Colony Capital has acquired a portfolio of institutional real estate collateralized non-performing loans from four German banks: Eurohypo, Landesbank Hessen-Thüringen, Berlin Hyp and Archon Capital Bank. The portfolio has a face value of 370 million euro ($523.8 million).
Investment vehicles managed by Colony Capital LLC (“Colony”), a leading private, international investment firm, have completed the acquisition of a portfolio of institutional real estate collateralized non-performing loans (NPL) from four German banks, including Eurohypo, Landesbank Hessen-Thüringen (Helaba), Berlin Hyp and Archon Capital Bank, Colony announced today. These first ranking loans have a face value of €370 million and were utilized to develop properties primarily in Berlin and Frankfurt in the mid to late 1990s.
“This transaction marks the first time syndicated loans were sold together as a package by a banking consortium as an NPL transaction in Germany, and possibly in Europe”
All loans in the portfolio were held by one borrower. Whole loans are the only loans related to the properties and will be sold together by the lenders. There are no senior, pari-passu or junior liens.
Since the end of 2009 Colony has made four NPL portfolio acquisitions in Germany over an 18 month period. “This transaction marks the first time syndicated loans were sold together as a package by a banking consortium as an NPL transaction in Germany, and possibly in Europe,” said Dilip Awtani, Managing Director and head of Colony’s Europe Debt Strategies. “We believe the underlying properties are attractive commercial real estate investments that can be re-positioned into core-plus or similar properties. Our strategy is to partner with bankers to help them reduce exposure to non-performing loans and to monetize illiquid assets. Europe is an active arena for underperforming and distressed assets, and we are pursuing many commercial real estate opportunities throughout the region to put our capital to work.”
Morgan Lewis provided legal counsel to Colony on this transaction.
About Colony Capital, LLC
Founded in 1991 by Chairman and Chief Executive Officer Thomas J. Barrack, Jr., Colony Capital is a private, international investment firm focusing primarily on debt and equity investments in real estate-related assets and operating companies. The firm has invested $45 billion in over 14,000 assets through various corporate, portfolio and complex property transactions. Colony has a team of more than 250 and is headquartered in Los Angeles, with offices in New York, Boston, London, Madrid, Paris, Rome, Beirut, Hong Kong, Beijing, Seoul and Taipei.