Distressed Capital Management in RBS NPL buy

The US real estate and structured finance firm bought the mixed residential real estate debt from the UK bank, which has been winding down its international business since a government bailout during the financial crisis.

Irvine, California-based Distressed Capital Management (DCM) has bought $207 million of loan assets from Royal Bank of Scotland, according to a statement by the firm, which is a portfolio company of holding company, Pluto Sama.

The whole loans relate to residential assets and are split between real estate owned properties and a variety of performing and non-performing loans with first lien security against one-family to four-family properties. The assets are secured against units spread across 43 states, the statement said.

“From a cash flow perspective the pool enjoys a ratio of REO to total assets in excess of 20 percent. The average loan size is over $200,000 keeping disposition costs down. The assets have been managed at a high level to date and our managers at DCM see real opportunities to improve performance and enhance cash flow and return. We see continued value and opportunity in the distressed space and plan to acquire more quality assets,” said managing director, Rod Colombi.

DCM is a small-scale asset manager focused on real estate development, securitization and performing and non-performing commercial and residential real estate loans. It has approximately $330 million in assets under management.

Pluto Sama’s other portfolio companies include law firms BP Law Group and Wilson Harvey Browndorf.