Proptech company Oxane Partners has started operating as a loan servicer, effectively giving lenders a means to bypass traditional loan servicing businesses.
The technology provider has secured a rating for primary and master servicing of commercial real estate loans from rating agency DBRS Morningstar.
Oxane said it was appointed on its first primary servicing instruction at the end of last year: as a facility agent on a loan-on-loan with a total commitment amounting to €250 mln, of which €71 mln is the current funded balance.
The mandate is from an investment bank which the firm declined to name. The facility is secured by five underlying loans against 29 properties in UK, Germany and Spain.
Oxane said that entering loan servicing was ‘a natural evolution’ of its six-year-old portfolio management business, to manage data for real estate lenders at source, providing direct access to its technology, Oxane CREST.
CREST allows lenders to track their facilities in real-time and access bespoke reports to meet their reporting requirements.
Vishal Soni, co-founder of Oxane said: ‘The loan servicing industry is still bereft of the digital transformation that is underway in the real estate industry, to the dismay of investors who are left in the lurch without timely and accurate data. We aim to increase transparency and efficiency for our clients.’
Oxane’s loan servicing is headed by Yousuf Attarwala, previously of Morgan Stanley, Credit Suisse, Deutsche Bank and Situs.
Other servicers with their own technology have forged direct links with lenders. In 2017 Mount Street, the European servicing and asset management business, sold a 20% stake in its UK-headquartered firm to Germany’s Aareal Bank.
Aareal uses software developed by Mount Street with Gresham Technology, called Clareti, for its loan syndication activities.