Strategic agreement in real estate between Cepal Hellas and Resolute Group

Cepal Hellas, the joint venture between Alpha Bank and DK, and Resolute Asset Management Group have entered into a strategic agreement to merge their activities in the Greek property management market.

The joint venture, under the name Resolute Kaican Greece S.A. (RKG) aims to consolidate the leading position of the two companies in the Greek real estate and asset management market, as well as the provision of consulting services. The deal is expected to be completed by the end of 2022.

RKG will provide advisory services and manage real estate for a wide range of clients such as banks, receivables managers, private equity funds and institutional investors, companies and Greek public organizations. In addition, the joint venture will provide services to Resolute’s existing clients in Greece, such as banks and investors, and to properties included in the portfolio managed by Cepal Hellas totaling €28 billion.

At the same time, RKG will leverage Resolute’s specialized expertise in the real estate market, the innovative technology provided by Resolute’s subsidiary, Recognize, as well as Cepal’s high-tech electronic platform and experience in managing non-performing exposures (NPEs). In addition, REInvest Greece, a real estate management company with state-of-the-art technologies and capabilities, will have an important role in the joint venture, the majority of whose shares will be transferred from Resolute to RKG.

The consortium will focus on:

1. In managing, enhancing the value and capitalizing on portfolios of granular real estate REOs.

2. In asset management and value creation for large commercial properties.

3. In real estate collateral management, real estate analysis and advisory support arising from portfolios of both performing and non-performing loans.

The dynamic of the consortium is enhanced by innovative technological approaches to the large size of portfolios under management for the Greek market.

Mr. Theodoros Athanasopoulos, CEO of Cepal Hellas, pointed out that “from the beginning of our activity, it was clear that the successful management of the portfolios we manage requires an understanding, but above all the ability to manage and successfully utilize real estate collateral. RKG we aim to create a first-of-its-kind, specialized and independent Real Estate Servicer, capable of delivering results and operating on a large scale, but above all with institutional, international standards.We are convinced that, RKG relying on Cepal’s financial strength and know-how and the Resolute Group’s technology platform and best practices and processes, will lead the rapidly growing Greek property management market, contributing decisively to the efficient management of Cepal’s NPL portfolios.”

For his part, Mr. Bill Hancock, Managing Partner of the Resolute Asset Management Group, stated that “this joint venture will allow us to apply sophisticated and proven techniques at an international level – from both shareholders – for both the serviced and for non-performing real estate portfolios in Greece. With a shared priority of maximizing real estate financial performance, we look forward to transforming the Greek market for the benefit of our clients. Our clear goal is to make RKG the most effective, independent real estate advisor and manager in GREECE.”

UBS Europe SE acted as Cepal’s exclusive financial advisor, PWC as tax advisor and Potamitis Vekris law firm as Cepal’s legal advisor. KPMG and Interpath acted as financial advisors to Resolute and Norton Rose Fulbright as legal advisor respectively.

Cepal Hellas

Cepal Hellas, which started its activity in 2017, is one of the protagonists in the Greek receivables management market. In December 2020, it implemented one of the largest carve-outs ever carried out in Greece, adding more than 800 new employees to its workforce in 24 new geographical locations nationwide. Cepal manages non-performing loans (NPLs) of 28 billion, the majority of which originate from Alpha Bank, and employs more than 1,100 employees.

Resolute Asset Management

Resolute Asset Management is an international property management and advisory firm with over 200 employees and offices in 12 countries across Europe and the Middle East. Resolute has been active in Greece since 2014. Resolute successfully combines specialized experience in real estate investment, banking and finance with the aim of offering innovative and efficient asset management and portfolio management consulting solutions in banking and finance, private investment and to institutional and public bodies.