ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK | POLAND
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
Romanian Market 2015/16 REO’s & Secured NPL’s Portfolios
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
Secured NPL’s Market - Eastern Europe Massive opportunity mainly driven by pressure on banks to sell
NPL’s and foreclosed assets.
Stable macro-economic environment.
Real estate market showing signs of recovery.
NPL’s * volumes by country
Romania EUR 10,7 billion
Hungary EUR 6,4 billion
Bulgaria EUR 4,9 billion
Serbia EUR 3,4 billion
Croatia EUR 5,9 billion
* ( source “Restructuring Central Europe - NPL markets to gain momentum” –page 8, Deloitte 2013 ” )
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ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
Romanian NPL’s Market 2014
In 2014, Romania was the most active in CEE region, selling secured NPL’s, with projects of EUR 2 billion:
• Volksbank Romania - Project Phoenix EUR 495m
• MKB Romania - Project Gabriel EUR 109m
• Volksbank Austria - Project Danube - Romania EUR 126m
• BCR Erste Bank Romania - Project Orion EUR 363m
• BCR Erste Bank Romania - Project Saturn EUR 443m
• Bank of Cyprus Romania - Project Demeter EUR 545m
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ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
Banks Selling Secured NPL’s - Outlook 2015
• Banks in Romania are under National Bank of Romania pressure to clean the balance sheets and facilitate new lending.
• Foreign banks are required by governments, e.g. Greece, Austria, to repay loans and recapitalize.
• In 2015, BCR Erste Bank is tried to sell a significant NPL portfolio in Romania with a estimated gross book value (GBV) of €3.5 billion.
• Other commercial banks (e.g. Piraeus Bank Romania, Eurobank EFG Group, NBG) will plan to liquidate large volume of NPL’s in 2015 and 2016, offering a significant buying opportunity.
October 15 5
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
Secured NPL – Romanian market challenges
• New market for secured NPL’s, banks are servicing NPL’s in-house.
• No past experience, limited established servicing platforms.
• Few local collection companies with on-ground management
expertise and international best practice.
• Few experienced real estate asset management companies (REO
management)
• NPL / REO Portfolios are spread nationwide and it is a dynamic
people driven processes
October 15 6
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
• Assets Securing
• Value Assessment
• Pricing Accuracy
• Costing & Timeline
• Repositioning / Adding value
• Facility Management
• Marketing & Sales
• Strategic Planning
• Valuation
• Acquisition
• Value Enhancement
• Supervision
• Administration
• Reporting
• Due diligence and pricing
• Underline assets valuation
• Collection management
• Insolvency process
• Restructuring process
• Reorganization plan
• Execution process
SECURED NPL
SERVICER
REO SERVICER
LOCAL PARTNER
ASSET MANAGEMENT
• Deal Sourcing
• Budget & Control
• Financial Analysis
• Financing
• Legal
• Accounting
• Institutional Reporting
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
Review
• Operational expenses
• Status Review &
Analysis;
• Enhancement
strategies (repositioning
/ redevelopment);
• Costing and Timeline;
• Recommend to the
client the best course of
action;
TAGOR
REO portfolio management
Divestment decisions
• Sell now
• Hold till recovery
• Develop by “ Add Value”
concept
Reliable valuation
• Existing assets
• New collaterals
A dedicated team to manage the REO Assets
Operations
• Management & Co-
ordination of all 3rd
Parties.
• Ongoing Reporting and
Monthly Status Updates
• Supervision of all activities
relating to authorities
• Rigorous financial
analysis of various
scenarios
• Supervision and execution
Legal and Finance
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
100% Equity
Senior Debt
Equity and
Junior Debt
Transaction
Discount
Senior Debt
Equity and
Junior Debt
Ag
ree
d T
ran
sfe
r V
alu
e
Current
Structure Year 1 Year 3/5
Asset Recovery Strategies
Asset Development Review:
case analysis, appraisal,
rationalization &
implementation plan
Asset Performance Plan:
Develop base case in asset
benchmarks
Asset Restructuring,
Implementation and institutional
reporting
Future Value
Creation
It’s All About Underlining Values
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
Introduction – Liberate Portfolio Solutions
Liberate is a vertically-integrated, full-service asset management company specialised in servicing portfolios of secured non-performing loans(“NPLs”) and real estate-owned assets (“REOs”)
Starting with intensive debt recovery at a minimum cost and through developing and executing an operating plan to maximise the value of REOs and/or single distressed real estate assets for our clients
Joint venture of the UK’s Poseidon real estate group and Romanian property asset management company Tagor
Full-service real estate asset management across SE Europe April 2015 www.liberate.solutions 10
ROMANIA | CROATIA | SLOVENIA | SERBIA | BIH | UK POLAND
© 2015, TAGOR
ALL RIGHTS RESERVED. This presentation is solely the property of Tagor. Any unauthorized reprint or use of this material is prohibited. No part of this
presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any
information storage and retrieval system without express written permission from the author.
Romania | Poland | Hungary | Croatia | Slovenia | Serbia | BIH | UK
Ofer Lieberson
Founder and Chairman
T: +40 31 620 08 28/ 29/ 30
M: +40 720 111 101
+972 544 777 304
W: www.liberate.solutions
If you require further information please contact:
Contact