Italian banking group Illimity has joined forces with US asset manager Apollo to invest up to €500 mln in single-name distressed credit exposures secured by real estate assets in Italy.
The 50-50 partnership will have an initial investment period of two years, and will pursue investments in NPL and UTP loans mainly secured by real estate assets and with a single price of up to €50 mln.
The two partners will have equal governance rights, with Illimity contributing loans with a gross nominal value of €231 mln.
The JV will see the direct involvement of illimity's Special Situations Real Estate teams and Apollo's European Principle Finance teams.
The two partners have selected Illimity’s subsidiary Neprix as sole special servicer for the management of the investments.
The deal is expected to be completed within the third quarter of 2021.
‘We are very proud to have entered into this 50/50 partnership with one of the main investors worldwide, which confirms illimity’s role as a primary player in the Italian non-performing loan market and its international recognition,’ said Andrea Clamer, head of Distressed Credit & Servicing Division of illimity. ‘The selection of neprix as sole special servicer accelerates the development of neprix’s third party servicing activities and is the recognition of the quality of the management of non-performing loans activities and of the success of the underlying business model.’