Secured non-performing real estate loans purchase

  • Project description

    Alternative finance company VIA SMS Group is looking to expand its business scope and plans to enter the bridge lending segment by financing mortgage-backed non-performing real estate loans in Spain. The aim of the business loan is to finance new business direction by offering VIAINVEST investors to participate in the venture. The business loan will be issued to the GINAMSUN TRADE, S.L. Unipersonal, with Spanish tax identification number C.I.F B-67551242, based in Barcelona, Pau Claris 162, 4º, 1ª, incorporated for an indefinite term by means of deed executed before the notary public Don Salvador Farrés Reig, on December 3, 2019, record number 1937, registered in the Registrar of Companies of Barcelona, volume 47175, document 104, page B-543620, 1st entry, which aims to acquire non-performing mortgage loans in Spain where liabilities are planned to be covered by realizing the pledge. The venture will be carried out in cooperation with ATLAN ADVANCE MANAGEMENT SL (ATLAN) which is licensed as a real estate credit intermediary (INTERMEDIARIO DE CRÉDITO INMOBILIARIO) by the Bank of Spain (Banco de Espana) in accordance with the Act 5/2019, of 15 March, regulating real estate credit agreements. All activities of ATLAN are supervised and controlled by the Bank of Spain. ATLAN provides clients and investors an access to credit and real estate assets in Spain through the tailored credit solutions, including credit portfolio management, credit administration, agency services, legal services, securitization services and collateral administration. ATLAN will ensure transaction management as well as technological partner Idealista - the largest real estate website in Southern Europe which will ensure in-depth market analysis for real estate realization related decision making. ATLAN is also a member of AIF (Association of Investment Advisory Professionals).

  • Investing in non-performing loans explained

    International Monetary Fund states that the issued loan is considered non-performing if debtors have not paid interest and/or principal payments in at least 90 days or more; interest payments equal to 90 days or more have been capitalized, refinanced, or delayed by agreement or payments have been delayed by less than 90 days, but come with high uncertainty or no certainty the debtor will make payments in the future. Banks usually sell non-performing loans (NPLs) to other investors in order to rid themselves of risky assets. Banks in some countries (Spain is the most notable example here) have been relatively successful in managing down their NPLs. This has generally relied on intensive workouts by these banks, access (by banks and investors) to external specialised NPL servicers, a mature and reasonably active NPL market into which banks can sell or securitise their NPLs, a reasonably well-developed ability for investors to value and to realise collateral and a national AMC willing and able to purchase large amounts of NPLs or whole portfolios of an asset class.