Time Equities Inc., a sponsor of private placement offerings and custom 1031 exchanges, has expanded its European presence to Italy through the acquisition of 463 non-performing loans (NPL) with a face value of $57.8 million (€49.9 million).
The loans, acquired from Banco Creditivo Coopertivo, are collateralized by real estate assets located throughout Tuscany, Lazio and Umbria, Italy. The company noted that it has historically invested in real estate directly as opposed to investing in real estate via debt.
“This is an opportune time for Time Equities to enter the Italian market, especially considering that the regulatory changes enacted by the government in 2017 allow foreign investors to take advantage of an improved regulatory and tax environment,” said Francis Greenburger chairman and CEO of Time Equities.
The acquisition features two loan categories: secured and unsecured loans. The investment includes 155 loans secured by various real estate collateral such as hotels, single-family homes, office buildings and shopping centers valued at about $42.7 million (€36.5 million), as well as 308 unsecured loans valued at about $10.8 million (€9.2 million).
“This acquisition allowed us to enter the Italian NPL market and to establish ourselves as a buyer that can focus on small to medium portfolios that may be overlooked by some larger institutional buyers,” said Aaron Medeiros, director of acquisitions and policy.
He added, “While we continue to believe that Italy is one of the most attractive NPL markets in Europe, we also intend to focus on forming joint venture partnerships with Italian property companies that invest in direct ownership of real estate.”
Founded in 1966, Time Equities Inc. is a real estate investment, development, and asset and property management firm. The company oversees a 30 million-square-foot portfolio of residential, office, retail, and industrial properties located in 30 states, five Canadian provinces, Germany, the Netherlands, and Anguilla. In addition, Time Equities closed approximately $30 million of outside 1031 exchange capital for new investments throughout 2017.