Eurobank signed an agreement to sell the first value-add REO portfolio, to Brook Lane funds, a specialist real estate investor with presence in Greece. The transaction signalled strong interest from both international and domestic investors and given its success opens a new chapter in the deleveraging of bank balance sheets.
Opus consists of 180 prime and secondary commercial assets with a nominal value of more than €80m requiring asset management expertise to turn the portfolio around. Greece’s recent macroeconomic recovery advocates strongly the case for acquiring REOs with an asset management angle allowing for higher yields compared to similar European periphery portfolios. Several asset management platforms have made their appearance to that effect. Similar prepositions from the other systemic Banks are expected in the first two quarters of 2020.
Property Solutions Asset Management (PSAM) acted as sole advisor to Eurobank on project Opus. Property Solutions is a leading real estate advisor in underwriting and asset managing NPL and REO portfolios on behalf of banks and institutional investors.