Intesa Sanpaolo, one of the leading banking groups in Europe, has created a new business unit, dubbed the Capital Light Bank (CLB), to manage problematic loans and non-core banking activities with a focus on deleveraging. Within this structure, a Real Estate Owned Company (Re.O.Co.) is now maximising the value of its property assets
Intesa Sanpaolo’s new Capital Light Bank (CLB), the brainchild of CEO Carlo Messina, has changed the bank’s approach to deleveraging. This business division, created as a core element of the group’s Strategic Business Plan 2014-2017 also comprises a Real Estate Owned Company called Intesa Sanpaolo Re.O.Co. This has a mission to maximise the value of the property assets in the group’s NPL portfolio by participating directly in auctions (Investment Activity) and stimulating the market to encourage third parties to take part in auctions (Auction Support). To date, Intesa Sanpaolo Re.O.Co. has already participated in 150 property auctions.
The Intesa Sanpaolo Re.O.Co. team
The Re.O.Co is now fully operative, and geared towards increasing its operations by strengthening the team. Currently comprising around 40 personnel, it is split into several divisions covering all aspects of real estate investment analysis and asset life-cycle management, while more hands-on activities are managed via outsourcing.
The Asset Management team comprises professionals that work in synergy to fine-tune the various phases of the Real Estate Asset Investment Management process. These include an Acquisition Manager, responsible for analysing investment opportunities, as well as a Portfolio Manager, in charge of lifecycle management and repositioning the assets after acquisition. The Transaction Manager promotes the auction process to the market, and coordinates sales & lettings after assets have been acquired and repositioned, both directly and by coordinating the external network.
The Business Plan Manager is charged with supporting the other Asset Management team members with economic and data analysis throughout the Asset Investment Management phases. The Legal Division provides support to the investment team by detecting any potential owner risks. It also presides over the post-auction adjudication phase, managing defence cases where they arise, and providing support during the finalisation of sales.
The Operative Support team takes care of acquiring and managing expenditure on goods and services. Amongst its various activities, the Administrative Support team verifies the appropriateness of the investment versus the potential risks, and prepares the specific documentation necessary for the auction participation.