Credito Fondiario Launches Re.o.Co. Leviticus, the first real estate company integrated in a securitization with GACS guarantee

The Bank will act as ReoCo Servicer, in addition to being already Master Servicer and Special Servicer through its subsidiary CF Liberty Servicing.

Rome, 27 July 2020 – Credito Fondiario, Italy’s leading bank in the investment and servicing of non performing loans portfolios and parent company of the Credito Fondiario Banking Group, has successfully completed the process of implementing a Real Estate Owned Company (ReoCo Leviticus) in the Leviticus SPV S.r.l. securitization, whose senior ABS securities are rated DBRS and Scope Ratings and backed by GACS guarantees.

“ReoCo Leviticus is the first ReoCo pursuant to Art. no. 7.1 of Law no. 130/99 to be regulated in an existing GACS-assisted securitization,” Guido Lombardo, Chief Investment Officer of Credito Fondiario, explains. “This is a very complex project, since, in order to complete it, it was necessary to dialogue and involve, among others, the entire class of holders of the securitization securities and the rating agencies DBRS and Scope Ratings. The latter re-analysed the entire securitisation structure to confirm that the inclusion of ReoCo had no impact on the rating of the securities.”

“This is an important result, as on the one hand it confirms Credito Fondiario’s unique ability to implement innovative capital markets solutions,” the Deputy General Manager and Chief Business Officer, Mirko Briozzo, explains, “and on the other, it is an important acknowledgment of our positioning as a leading operator in the Italian NPL real estate sector.”

Credito Fondiario will act as ReoCo Servicer — in addition to being Master Servicer of the securitization and Special Servicer through its subsidiary CFLS — with the responsibility to identify the auctions to participate in, prepare business plans to participate in the auction and manage and resell the properties that will be purchased from time to time by ReoCo.

Thanks to a network of over 400 brokers, retained and scattered throughout Italy, the Real Estate team of Credito Fondiario currently manages about 1,500 properties (for a total of 2 million square meters), deriving from various securitizations of leasing and banking loans and related support structures (earmarked assets, LeaseCo and ReoCo) for which Credito Fondiario also acts as Special Servicer.
Credito Fondiario was assisted in the structuring of ReoCo Leviticus by the RCCD law firm.