BCMGlobal announces the closing of its third investment in the Italian market in partnership with a group of leading international institutional investors including Swedish Albatris in a joint venture with U.S. based Three Line Capital.
The partners have purchased from an international institutional investor a secured non-performing loan portfolio with a total GBV of €42 million, through the securitization vehicle Wings One SPE S.r.l.
For this partnership, which focuses on real estate backed NPLs and UTPs, this purchase is another key milestone in its target of investing up to €100 million equity in secured NPEs in the short-medium term. This latest acquisition by the BCMGlobal – Albatris – Three Line Capital joint venture indicates the Group’s success in serving the Italian market, as they are now approaching €100 million in GBV acquired from multiple sellers in a period of less than 12 months.
BCMGlobal has acted as advisor throughout the acquisition process, assisting the partners from the origination and underwriting of the opportunity, to the deal execution and closing. BCMGlobal is also the Special Servicer for the securitization, with 130 Servicing as Master Servicer and Corporate Servicer, Calculation Agent and Representative of the Noteholders.
The investors were assisted by Legance – Avvocati Associati in relation to the transaction documents and by CBA Studio Legale e Tributario on legal due diligence. Avalon provided the valuations of the real estate collateral assets of the NPL portfolio.
Simon Fitness, Chief Executive Officer of BCMGlobal Ireland and Italy said:
“This is our third such investment in the past 10 months and represents another important milestone for the Italian business. Our investment & advisory team continue to source opportunities from within the very active secondary market in Italy.
Since 2018 we have enhanced and evolved our proposition and reputation as a special server and real estate asset manager, and this third co-investment further demonstrates our commitment to the Italian market”.
Arash Talebinejad, Managing Partner of Albatris commented:
“This transaction complements our existing investment in Southern Europe. Italy is one of our key markets and we remain committed to further investments in the Italian credit market in collaboration with BCMGlobal and Three Line.”
“This latest acquisition underscores our commitment to our European NPL business. The Three Line Capital, Albatris and BCMGlobal partnership has proven its success in in the Italy NPL markets, and we anticipate additional portfolio acquisitions in calendar year 2023” said Benjamin Bornstein, Partner at Three Line.
BCMGlobal announces the closing of its second investment in the Italian market in partnership with a group of leading international institutional investors including Swedish Albatris in a joint venture with U.S. based Three Line Capital.
The partners have purchased a secured non-performing loan portfolio from an Italian GACS securitization managed by doValue S.p.A. through the securitization vehicle Wings One SPE S.r.l.. This partnership, which focuses on real estate backed NPLs and UTPs (Unlikely-To-Pay), aims to invest up to €100 million in secured NPEs (Non-Performing Exposures) in the short-medium term.
BCMGlobal has acted as advisor throughout the acquisition process, assisting the partners from the origination and underwriting of the opportunity, to the deal execution. BCMGlobal is also the Special Servicer for the securitization, with 130 Servicing as Master Servicer and Corporate Servicer, Calculation Agent and Representative of the Noteholders.
Legal support to the investors in relation to the transaction documents has been provided by Legance – Avvocati Associati. The valuations of the real estate collateral assets of the NPL portfolio have been provided by Avalon.
Simon Fitness, Chief Executive of BCMGlobal Ireland and Italy said:
“In the last 5 years we have enhanced our proposition and reputation as a special server and real estate asset manager, and this second co-investment further strengthens our commitment in the Italian market.
Following the strong performance of our first co-investment in 2022, we were keen to explore further opportunities to invest. This deal concluded with a leading counterpart such as doValue builds on our experience and expertise in Italy, optimising returns on NPL and UTP secured loans through proactive loan management and utilising our real estate team to support auction facilitation and value-add activities.”
“There remain substantial opportunities in the Italian NPE primary and secondary markets, and we look forward to identifying them as we continue to grow our presence in the industry.”
Paolo Petrignani, Managing Director of Albatris commented
“The acquisition demonstrates our ability to complete complex transactions during challenging market conditions. We look forward to continuing to capitalize on asset backed credit opportunities and special situations in the Italian market together with BCMGlobal and Three Line Capital.”
“This new acquisition confirms the success of our European NPL strategy. By working in concert with Albatris and BCMGlobal, we have been able to establish an ongoing presence in the Italy NPL markets. We look forward to making further investments in 2023 and beyond”
said Benjamin Bornstein, Partner at Three Line.
BCMGlobal is pleased to announce it is moving to brand new Grade A offices in the historic financial centre of Dublin at Kildress House, Pembroke Row, Dublin 2.
BCMGlobal is pleased to announce it is moving to brand new Grade A offices in the historic financial centre of Dublin at Kildress House, Pembroke Row, Dublin 2.
Kildress House was built in 2020 to the highest modern office standards. Located just off Baggot Street and the Grand Canal, its central location coupled with its high-quality finishes have been central to its appeal to BCMGlobal. The building was designed with sustainability to the forefront and was accredited LEED Gold and BER A3. It also provides for excellent end of trip facilities, important for the ever-active commuter.
Simon Fitness, BCMGlobal’s CEO commented:
“We are proud to be Ireland’s leading loan servicer and we are committed to providing our people and clients with Grade A office space in Dublin City. We know that this brand-new office will help us attract and retain the best talents for our new blended working model while reducing our carbon footprint and enabling even closer contact with our financial clients and their customers. Thank you to Savills, the letting agency, for facilitating this transaction.”
Together with its new office in Dublin, BCMGlobal also has offices in Maynooth and Belfast, as well as in Milan, London, Ipswich, and Amsterdam.
BCMGlobal delivers a range of core services including origination services, primary and special servicing, and bank outsourcing to a wide range of clients.
BCMGlobal’s clients value their expertise and trust the company to help them establish and grow their operations locally and internationally through the provision of scalable, tech-enabled loan servicing solutions, this new office local will further support this.
The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD visited BCMGlobal’s First Home Scheme (FHS) Operations Centre in Maynooth on Thursday 27th October.
Launched in July 2022, the FHS is a €400m shared equity scheme which is part of the Government’s Housing for All Programme. It is designed to help bridge the gap for first-time buyers and eligible homebuyers between their deposit, mortgage and the price of their new home. It is available for newly built houses or apartments in a private development in the Republic of Ireland.
The Scheme is funded and supported by the Government of Ireland (Department of Housing, Local Government and Heritage) along with Participating Lenders, Allied Irish Banks PLC (including AIB, Haven Mortgages and EBS), Bank of Ireland Group PLC, and Permanent TSB PLC.
BCMGlobal collaborated with all stakeholders to deliver an online digital-first solution that will help thousands of homebuyers get on the property ladder.
Since its launch in July 2022, over 2,000 people have registered an interest in the First Home Scheme and, so far, over 600 first time buyers have been approved for the scheme.
BCMGlobal delivers best-in-class, customer focused outsourcing solutions to banks, non-bank lenders, and debt investors. To deliver the Scheme, and to support customers through the application process and the full lifecycle of the equity product, BCMGlobal has recruited and trained centre agents, case managers and operations colleagues. With the recruitment of the FHS team, BCMGlobal now employs 370 at its operations centre in Maynooth bringing the total workforce in Ireland to over 600 staff.
On his visit to the BCMGlobal offices, Minister O’Brien met with the FHS team and received an updated briefing on the roll out of the Scheme.
Commenting Minister O’Brien said:
“Visiting the BCMGlobal offices it is abundantly clear to me the amount of work which has gone into making the First Home Scheme a success. People are already getting the keys to their new homes under the First Home Scheme, and we will see thousands more over the coming years.”
Michael Broderick, CEO of the First Home Scheme said:
“Delivery of the First Home Scheme within the timeline available required a high level of commitment from all participants including BCMGlobal. Working with BCMGlobal I found them to be solution focused, with the full resources of the Group available to the project. To date, BCMGlobal have delivered on their mandate, and I look forward to working with them in the years ahead and in doing so facilitate thousands of individuals and couples to own their own new home.”
Simon Fitness, CEO of BCMGlobal in Ireland said:
“BCMGlobal is delighted to have welcomed Minister O’Brien to our offices and really pleased to show him the excellent work that our team are delivering on the First Home Scheme. The FHS has shown real success in helping people get on the housing ladder, and we are proud to partner with the Government and other stakeholders to deliver this proposition. The scheme further evidences our market-leading expertise in the design and implementation of bespoke outsourced solutions, as well as leveraging our deep knowledge of the Irish mortgage market.”
Learn more about the FHS: https://www.firsthomescheme.ie/
We are pleased to announce that BCMGlobal has been appointed as Primary and Special Servicer on ‘Project Sycamore’, a mixed loan portfolio of residential mortgages, buy-to-let mortgages, land and development, and commercial property loans to be sold by Allied Irish Bank.
This appointment will add 45 new roles in our offices across Ireland, bringing our total workforce in Ireland to over 600 staff.
Simon Fitness, BCMGlobal’s CEO commented:
“We are proud to be Ireland’s leading loan servicer. We work closely with clients and consumers at all stages of the loan lifecycle, from application to redemption. The breadth of our knowledge and expertise mean we are well-positioned to service a portfolio of the size and complexity of Project Sycamore, and we are proud of our track record working with customers to resolve their financial difficulties and to achieve the best outcomes for all parties”
BCMGlobal is a leading European independent loan services provider.
With multijurisdictional expertise including operations in Ireland, Italy, the UK, and the Netherlands, we deliver a range of core services including origination services, primary and special servicing and bank outsourcing to a wide range of clients.
Our clients value our expertise and trust us to help them establish and grow their operations locally and internationally through the provision of scalable, tech-enabled loan servicing solutions.
In July 2022, the First Home Scheme (FHS) launched in the Republic of Ireland, supported throughout the end-to-end process by BCMGlobal.
The FHS is a shared equity scheme, designed to help bridge the gap for first-time buyers and eligible homebuyers between their deposit, mortgage and price of their new home. It is available for newly built houses or apartments in a private development in the Republic of Ireland.
The Scheme is funded and supported by the Government of Ireland (Department of Housing, Local Government and Heritage) along with Participating Lenders Allied Irish Banks plc (including AIB, Haven Mortgages and EBS), Bank of Ireland Group plc, and permanent tsb plc. The maximum stake that the Scheme will take is 20 per cent if the buyer is also availing of the Government’s separate Help to Buy scheme, and 30 per cent if Help to Buy is not used.
Since winning the new business in November 2021, BCMGlobal has collaborated with all key stakeholders, including the Government of Ireland, Allied Irish Banks plc, Bank of Ireland Group plc, permanent tsb, Banking & Payments Federation Ireland (BPFI) to deliver an online digital-first solution that will help thousands of homebuyers get on the property ladder.
BCMGlobal engaged with all parties to design the end-to-end customer journey and processes, the equity product and the underlying fund and Scheme rules. BCMGlobal led the design, development, testing and implementation of the end-to-end solution, including the public-facing website and online application portal. BCMGlobal also successfully recruited and trained a team of contact centre agents, case managers and operations colleagues who will support customers and manage the end-to-end process.
Simon Fitness, CEO of BCMGlobal in Ireland said:
“We are delighted to support the First Home Scheme. Buying a home can be an exciting time, but also stressful if potential buyers don’t have enough funds to get on the property ladder. We are proud to have partnered with the Government of Ireland and other key stakeholders to deliver the FHS and to be part of a solution helping bridge the funding gap for potential homebuyers. The First Home Scheme further evidences our market-leading expertise in the design and implementation of bespoke outsourced solutions, as well as leveraging our deep knowledge of the Irish mortgage market. Thank you to all key stakeholders, including the Government of Ireland, Allied Irish Banks plc, Bank of Ireland Group plc, permanent tsb, Deloitte and BPFI, involved in this launch for selecting BCMGlobal as TPO. We look forward to continuing to work together in rolling out the Scheme.”
Michael Broderick, interim CEO of the First Home Scheme said:
“This is an exciting scheme to help first-time buyers realise their ambition of buying a home. it will help close the affordability gap while ensuring people borrow at a level that reflects their individual financial circumstances. Our job is to make it as easy as possible for first-time buyers to benefit from this support and help them get keys in their hands as quickly as possible. We are committed to providing easy access and a high-quality service. The success of this launch has been achieved through the collaboration of all parties involved, enabling applicants of the Scheme to afford a new home and a fresh start. We partnered with BCMGlobal because of their unrivalled expertise and strong performance delivery and we look forward to working with BCMGlobal in the years ahead in delivering this very important scheme.”
BCMGlobal today announces the launch of a partnership in Italy with a group of leading international institutional investors including Swedish Albatris in joint venture with U.S. based Three Line Capital. BCMGlobal has co-invested into the securitization from Wings One SPE S.r.l.
This newly launched partnership has completed a first investment in the Italian market by purchasing a secured non-performing loan (NPL) portfolio from a major European financial institution. The partner investors aim to invest up to €100 million in secured NPEs (Non-Performing Exposures) in the short-medium term, focusing on real estate backed NPLs and UTPs (Unlikely-To-Pay).
BCMGlobal has acted as advisor throughout the acquisition process, assisting the partners from the origination of the opportunity, the underwriting and deal execution. BCMGlobal has also been appointed as Special Servicer for the securitization, with 130 Servicing as Master Servicer and Corporate Servicer. In the context of the securitisation transaction, 130 Servicing will also assume the roles of Calculation Agent and Representative of the Noteholders.
Legal support to the investors in relation to the structuring and implementation of the securitization and the co-investment arrangements has been provided by Legance – Avvocati Associati. With reference to the transaction documents, further legal assistance has been provided by Allen & Overy to BCMGlobal. The valuations of the real estate collateral assets of the NPL portfolio have been provided by Avalon.
Simon Fitness, Chief Executive of BCMGlobal Ireland and Italy said,
“Over the last five years, we have built a strong reputation as a special servicer and real estate asset manager in Italy. This new partnership demonstrates our continued commitment to the Italian market and the confidence leading international institutional investors have in us to deliver.
The complexity of the work we undertake on NPL and UTP workout activity together with real estate asset management are much in demand, and the opportunity to establish a long-term relationship with Albatris is a fantastic next step in our growth journey.”
“We are pleased to have completed this milestone acquisition. We believe it will pave the way for other purchases of credit portfolios,” – said Paolo Petrignani, Managing Director of Albatris – “Italy is one of our key markets and we remain committed to further investments.”
Arash Talebinejad, Managing Partner of Albatris commented:
“The transaction is accretive to our credit strategy, as we continue to further capitalize on our strong pipeline of attractive investment opportunities. We look forward to continuing working closely with BCMGlobal to expand further our footprint and provide tailored asset backed credit solutions for prominent financial institutions across the European markets.”
“We are very excited to partner with Albatris on this maiden investment in Italy” said Benjamin Bornstein, Partner at Three Line. “Our years of experience in creating and leading joint venture partnerships allowed us to pursue this opportunity with Albatris and BCMGlobal, and we expect to build on this first acquisition.
BCMGlobal Mortgage Services took home the win for Best Loan Servicer at Mortgage Gazette’s Awards – an award that celebrates exceptional mortgage servicing.
BCMGlobal Mortgage Services is a UK mortgage servicer, rated by Fitch and S&P, whose clients include award-winning innovative lenders.
The business offers clients a range of white-labelled outsourced services to help them manage their loan portfolios cost-effectively. This includes residential, buy-to-let and commercial loans for regulated and non-regulated clients – including retail banks, building societies, specialist lenders, pension, hedge and private equity funds.
The team services £6.9bn of mortgage assets for both loan originator and portfolio investors, totalling 53,000 accounts.
More than 15,000 of these (valuing £2.9bn) are for buy-to-let mortgages while 36,000 (£3.1bn) are residential.
Going above and beyond for lenders during Covid-19
Throughout Covid-19, BCMGlobal has continued to deliver service excellence and innovation to its lender clients – including the most difficult of lockdowns periods. The business ensured clients could respond positively to the unexpected demands caused by the pandemic while meeting stakeholder needs.
BCMGlobal in fact achieved its best-ever Net Promoter Scores in 2020-2021:
How does BCMGlobal help clients overcome their challenges?
Covid-19 lockdowns reminded the UK’s mortgage industry how crucial it is that banks and funders can receive up-to-the-minute reports on their investments from their lenders. This helps them to judge performance and report back to shareholders, and even the Financial Conduct Authority (FCA) where required.
Many lenders found it difficult, if not impossible, to organise payment holidays at short notice when their own staff was either furloughed or working from home.
BCMGlobal’s clients needed accurate data on the performance of their part of the loan book. They also required immediate access to ensure their investment goals were being met. Real-time information was essential; so BCMGlobal created a solution that worked remotely and could accurately monitor all activity from the borrowers who took payment holidays.
Supporting from the inside out
During lockdowns, BCMGlobal established Covid committees who met weekly to ensure the safety of employees and their families. The committees also successfully introduced remote working and flexible working patterns
All sites were made Covid-secure and service-level agreements (SLA) were preserved. BCMGlobal delivered payment deferral solutions and worked on two portfolio trades and two securitisations, enabling several standby arrangements. The business also delivered a project that built a post-completion servicing solution for a new lender who will launch this year.
A proactive approach
BCMGlobal adopted a proactive approach to management, including emails, broker contact and all other day-to-day activity.
The business also:
For some lenders, over 70% of buy-to-let books and originations are in company structures. So alerts were set up at Companies House for when loans came on-board with notification of changes. These include:
‘I am thrilled that we have won the award for Best Loan Servicer at the 2022 Mortgage Finance Gazette Awards. A huge thank you to my team and those who support the business behind the scenes and further afield. We are being recognised for everything we have achieved; these gongs are awarded as a result of a team effort. We celebrate a job well done for our clients and the market as a whole.’
Mark Davies, MD of BCMGlobal Mortgage Services
BCMGlobal has facilitated a deal for a senior debt funding facility of up to £100m
BCMGlobal has facilitated a deal for a senior debt funding facility of up to £100m for Fundamentum, an Investment Advisor specialising in the UK Supported Housing market, from AgFe, the fixed income innovators.
Fundamentum specialises in creating and managing Supported Housing assets across the UK, in partnership with Housing Providers and Local Authorities for the UK’s most vulnerable people, including those with learning disabilities, autism, the homeless and adults with mental health struggles. Fundamentum continue to focus their efforts on responsible investing and have become an early adopter of The Sustainability Reporting Standard For Social Housing (SRS) further confirming their commitment to improving ESG reporting frameworks and collaborating with like-minded partners within the Social Housing Sector.
BCMGlobal’s Real Estate Finance team, experts in sourcing, securing, and structuring real estate finance for investors and developers, was tasked with sourcing a long-term Senior Loan to support the establishment of these portfolios.
BCMGlobal worked closely with AgFe, the asset manager and investment advisory firm specialising in fixed income innovation, to agree initial senior debt funding of £24m. With part of BCMGlobal’s ambition to establish long term relationships with suitable lenders, AgFe and Fundamentum have expressed a mutual desire to work together over the longer term to grow both portfolios, and as such additional debt funding up to a total of £100m is expected to follow as additional assets are acquired. This will allow for the development of more social housing in the UK, as well as strong investment returns for the funds.
Tim Schuy, Head of Real Estate Finance at BCMGlobal, comments:
“With ESG at the forefront of the investment agenda, we’re proud to have worked with Fundamentum and AgFe to secure a deal which provides not just great investment outcomes for those involved, but also improves the UK’s social housing landscape and has a positive social impact. We pride ourselves on our targeted process, which helps move transactions along quickly and efficiently, and in delivering excellent outcomes for our clients and their funding partners.”
A spokesperson at Fundamentum, added:
“There are more than a million households on Local Authority waiting lists and this number is increasing each year so there is an enormous amount of work to be undertaken in order to meet this need. We’re grateful to BCMGlobal for supporting us in sourcing the funding to continue to provide appropriate housing to those most in need. We look forward to continuing to work with both BCMGlobal and AgFe in the years to come.”
Xin Zhang, Partner at AgFe, comments:
“Fundamentum is doing excellent work in an important sector, which we believe creates a significant investment opportunity for our clients looking to make their money matter. We are pleased with the outcomes of the funding deal thus far, and look forward to supporting the portfolios as they develop and grow over the coming months.”
Market Trend Analysis Report 2021
A huge two thirds (64%) of real estate lenders anticipate new loan originations to increase this year
While COVID-19 sits at the top of the risk pile, the sector appears to have settled when it comes to the impact of Brexit. Last year, more then two thirds (77%) identified Brexit uncertainty as the main market risk, but this has plummeted to just 2% in 2021.
