Large portfolio of credits secured by first and second lien mortgages over a diverse set of residential, commercial, and industrial real estate assets. These holdings were associated with a well-known Iberian real estate group, which faced widespread financial distress of a complex nature.
ECS acquired credits from a bank secured by mortgages and share pledges over several subsidiaries. Most of the debt was in default and the borrower was pre-insolvent. Following the acquisition, we pursued a deliberate and assertive legal strategy with the goal of promptly gaining control over the assets. Having succeeded at our enforcement strategy, ECS teamed up with a well incentivized property management team, comprising several seasoned industry professionals. Many of these professionals had deep knowledge of the assets and a successful track record in managing and turning around real estate assets in Portugal.
Through diligent efforts, the assets underwent significant enhancements, setting the stage for substantial transformation. A large portion was subsequently divested individually, attracting both institutional and retail buyers willing to pay a premium over our initial acquisition price.