GE Real Estate acquires 1 billion euro Italian loan portfolio.Milan, Italy-based Pirelli RE and Fairfield, Connecticut-based General Electric Co., through its local units--GE Real Estate Italy and GE Commercial Finance Services Italy--announced they have acquired a portfolio of nonperforming loans from Amsterdam-based ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) subsidiaries Banca Antonveneta, Padua, Italy and Interbanca, Milan.Under the terms of the deal, GE will act as the majority partner in the operation, with Pirelli RE holding a 35 percent stake. GE Corporate Finance Bank provided bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. for the transaction, while Pirelli RE will act as the servicer and asset manager for the loan portfolio. The mixed commercial loan portfolio has an approximate gross book value of 1 billion euro, with the majority of the loans secured against real estate assets located across Italy. "We are constantly seeking opportunities to increase our presence in the country and diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our portfolio," said Marcelo Horcel, managing director of GE Real Estate Italy. "As more Italian financial institutions look to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose their nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. , we look forward to completing further transactions such as this in the future." The partners have signed an exclusive mandate An exclusive mandate is a government's assertion of its legitimate authority over a certain territory, part of which another government controls with stable, de facto sovereignty. It is also known as a claim to sole representation or an exclusive authority claim. with Banca Antonveneta for the acquisition of additional nonperforming loan portfolios expected to come to market in 2007, for a gross book value of approximately 5 billion euro. This transaction represents the second acquisition by GE of nonperforming loans in Italy, following the joint venture with ABN AMRO and Tecnocasa, Milan, Italy, in 2006 to acquire a portfolio with a total gross value of 1.8 billion euro from Unicredit Group, Milan, Italy. |
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