AnaCap Financial Partners LLP ("AnaCap"), the specialist European financial services private equity firm, together with H.I.G. and Deutsche Bank, have completed the acquisition of a €495m portfolio of non-performing and sub-performing loans from Volksbank Romania. Under terms of the agreement, funds advised by AnaCap will jointly acquire the entire portfolio with H.I.G and Deutsche Bank.
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 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 and divest assets in order to clean up balance sheets and 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 mid-2008, are now on the rise, with the areas surrounding central Bucharest and other main cities increasing 4% for 2013.
Justin Sulger at AnaCap, commented:
"We are delighted to have acquired this portfolio of loans, which highlights our ability to execute innovative and complex transactions across Europe. The portfolio is backed by a wide variety of real estate assets, requiring a range of resolution strategies, which necessitate a deep understanding of consumer and corporate debt in local markets and a highly analytical approach to valuation and on-going management."