Real estate loans to Attestor
- Products and services
ABN AMRO has signed an agreement with investment company Cumberland for the sale of some 75 real estate loans with a total nominal value of over EUR 200 million. Cumberland has appointed Attestor Capital LLP (Attestor) to manage the loans.
The real estate loans in question have been in the process of being handled by ABN AMRO’s Financial Restructuring & Recovery department for an average of more than four years. During this period, ABN AMRO has explored possibilities with these clients to reach a workable solution for both the clients and the bank. Despite these efforts, no solutions were found.
Eighty per cent of these real estate loans had already been transferred to the bank’s foreclosures team. In about one-quarter of these cases, the borrowers have gone bankrupt.
ABN AMRO has decided not to continue handling these loans and any foreclose proceedings relating to the mortgaged property. Instead, the loans are being transferred to a separate legal entity and sold.
Same rights and obligations
ABN AMRO has carefully selected the buyer, ensuring that clients’ rights and obligations remain unchanged after the transfer.
The sale will create a new context for the loans, possibly opening the door to alternative solutions. Attestor has a long-term focus on, and significant experience in, Dutch real estate. Attestor and the borrowers will together explore solutions that could be beneficial to both parties and maximise the underlying assets.
By selling all of these loans in a single transaction, ABN AMRO can use the freed-up capital to grant new loans to other companies.