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Up to 50,000 properties under the Cepal-Resolut deal

By Leonidas Stergiou

Six months after the deal with Davidson Kempner, the management company Cepal closes a strategic agreement with another international real estate leader, Resolute Asset Management, with the aim of creating a joint venture under the RKG brand. The primary objective of the agreement is the promotion of RKG to the largest and independent real estate servicer in Greece that will focus on consulting and management of real estate in the private and public sector.

The goal of the new joint venture

For this purpose, in its business planning, RKG envisages the development of partnerships and the provision of related services to an expanded audience of stakeholders, such as real estate investors, banks, financial organizations, companies and Greek public bodies, but also private investors. That is, its goal is to expand its services and presence as an independent service provider in the real estate market in Greece and Europe. However, first real estate will come from securitizations and from Alpha Bank’s real estate portfolio owned by Cepal Hellas and from existing Resolute customers. It is about 30,000-50,000 existing properties that will be managed by RKG and owned by Cepal, amounting to 28 billion euros.

RKG’s goal is to offer integrated solutions by providing specialized services related to the management of each property separately throughout its life cycle. This includes providing services from initial inclusion in the managed portfolio to its full utilization. The properties can come from non-performing exposures (NPE) management or from investment moves. In addition, RKG will provide advisory services to investors during the evaluation of real estate investments or non-performing loan portfolios.

How it will work

RKG will leverage:

First, Resolute’s specialized expertise in the real estate market.

Second, the technology provided by Resolute’s subsidiary, Recognite.

Third, Cepal’s electronic platform and experience in managing non-performing exposures.

Fourth, the property management company REInvest Greece which has state-of-the-art technologies and capabilities. The majority of whose shares will be transferred from Resolute to RKG.

How today’s Cepal came about

The new Cepal emerged during the banking transformation of Alpha Bank (“hive down”) and the Galaxy project which involved the securitization of bad loans amounting to 10.8 billion euros that was announced at the end of 2019 for the strategic planning 2020-2022. planning, which has now been completed, provided for the spin-off and hive-down of Alpha Bank’s core banking activities to a new banking entity under the full ownership of the listed company, which will be transformed into a holding company ( holding company.) Indeed, the current listed company is Alpha Bank Holdings, with Alpha Bank as a 100% subsidiary.

The securitization of the 10 billion red loans (Galaxy plan) also provided for the creation of New Cepal, which, alongside the portfolios of third-party investors it already manages, would take over the management of the securitized portfolio as well as the remaining MEAs of Alpha Bank. Nea Cepal was created from the sale of the NPEs management activity of Alpha Bank to Cepal Hellas and the subsequent sale of Nea Cepal. This would then be followed by the sale of Nea Cepal to investors participating in Project Galaxy. As they happened.

Cepal, in December 2020, 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.

In February 2022, Alpha Bank announced the agreement with Davidson Kempner, which acquired 80% of Nea Cepal and 51% of the mezzanine and junior securities of Galaxy (red loan securitization 10.8 billion euros). Now, New Cepal (with DK holding 80%) has agreed with Resolute Asset Management to create a joint venture, RKG, with the aim of taking the lead in real estate management.

Who is Resolute?

Resolute Asset Management is an international property management and advisory company 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.

Skyline Property Development Plan

About a month ago, the preferred investor in the “Skyline” consortium, which is not related to the new KGR consortium, was announced. Dimand/Premia was selected as the preferred investor. The Skyline transaction concerns a perimeter of real estate valued at approximately 500 million euros. perimeter includes properties in which the new scheme intends to invest significant funds for their repositioning on the market (re-development), income properties (yielding) as well as properties intended for sale on the market (trade). The new scheme will have more than 800 properties worth more than 1 billion euros

Source: Capital

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