Focus

As a rule, the market for non-performing real estate loans can be broken down into large-scale financing on the one hand, and a midmarket and lower-end lending segment on the other.

Segments

Key features of large-scale financing transactions:

• Individual properties act as principal collateral
• Professional real estate investors or closed-end real estate funds
• Workout strategies have to be carefully formulated to take detailed account of each individual borrower
• Real estate industry expertise is required to turn properties into attractive investment propositions

Key features of the midmarket segment:

• Midsized loan volumes and a broad spectrum of different collateral types
• Predominantly professional real estate investors, few private clients
• Effective resolution of all collateral requires extensive workout experience
• Specific steps are taken to improve the attractiveness of individual properties

Key features of the lower-end segment (smaller loans and unsecured debts):

• Outstanding loans batched into smaller lots
• Predominantly private clients
• Value creation by means of standardized and efficient workout processes

Lohnbach specializes in large-scale real estate transactions and the midmarket segment. The focus is on portfolios of non-performing loans on office, hotel, healthcare and retail properties, from an aggregate portfolio volume in excess of €25m, as well as individual loans backed by collateral with a value of €10m or more. Residential properties are not among our preferred types of collateral.

Direct contact: Gerhard Knab