HIG Capital credit affiliate Bayside Capital has acquired an Italian non-performing loan (NPL) portfolio from banking group Cassa di Risparmio di Ravenna for €40 million via a securitisation, a source close to the situation said.
The loans are secured on a mix of residential and commercial real estate assets located in the Ravenna and Bologna regions, Bayside said in a statement regarding the deal released on Monday.
The transaction is the first NPL acquisition by HIG Capital in the Italian market. The firm expects to make further investments in Italy's real estate debt market, the firm said. The transaction was structured by Bayside’s servicing partner Fare NPL, an Italian asset management company. It’s understood that Bayside might leverage the assets once it has completed a few more transactions in the country.
Bayside opened an office in Milan a few months ago, with four professionals led by Raffaele Legnani. It is currently recruiting another team member.
Ahmed Hamdani, managing director in the UK at Bayside Capital, said in the statement: “We are pleased to make our first investment in the Italian market and to be working with Fare NPL in this transaction. We believe the Italian market presents excellent value and this transaction reflects HIG’s commitment to growing its Continental European real estate and NPL business.”
Chris Zlatarev, director in the UK at Bayside Capital, added: “The transaction highlights our collaborative approach and we are already working on further transactions in the Italian market.”
Bayside Capital declined to comment beyond the statement.