GE will act as the majority partner in the operation. Pirelli RE holds a 35% stake and will act as the servicer and asset manager for the loan portfolio. GE Corporate Finance Bank provided bridge financing for the transaction.
As part of the transaction, the partnership has signed an exclusive agreement with Banca Antonveneta wherein it will acquire additional non-performing loan portfolios expected to come to market in 2007. The combined book value of the portfolios is approximately 5 billion pounds.
This transaction represents the second acquisition by GE of non-performing loans in Italy, following the joint venture with ABN Amro and Tecnocasa in 2006 to acquire a portfolio with a total gross value of 1.8 billion pounds from Unicredit Group.
"As more Italian financial institutions look to dispose of their non-performing assets, we look forward to completing further transactions such as this…," says GE Real Estate Italy managing director Marcelo Horcel. "For both the real estate and the commercial lending divisions of GE, NPLs represent a major pillar of growth in the Italian market."
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