Tagor london presentation speech october 2015


Secured NPL’s Market - Eastern Europe Massive opportunity mainly driven by pressure on banks to sell

NPL’s and foreclosed assets.

Stable macro-economic environment.

Real estate market showing signs of recovery.

NPL’s * volumes by country

Romania EUR 10,7 billion

Hungary EUR 6,4 billion

Bulgaria EUR 4,9 billion

Serbia EUR 3,4 billion

Croatia EUR 5,9 billion

* ( source “Restructuring Central Europe - NPL markets to gain momentum” –page 8, Deloitte 2013 ” )

3


Romanian NPL’s Market 2014

In 2014, Romania was the most active in CEE region, selling secured NPL’s, with projects of EUR 2 billion:

• Volksbank Romania - Project Phoenix EUR 495m

• MKB Romania - Project Gabriel EUR 109m

• Volksbank Austria - Project Danube - Romania EUR 126m

• BCR Erste Bank Romania - Project Orion EUR 363m

• BCR Erste Bank Romania - Project Saturn EUR 443m

• Bank of Cyprus Romania - Project Demeter EUR 545m

4


Banks Selling Secured NPL’s - Outlook 2015

• Banks in Romania are under National Bank of Romania pressure to clean the balance sheets and facilitate new lending.

• Foreign banks are required by governments, e.g. Greece, Austria, to repay loans and recapitalize.

• In 2015, BCR Erste Bank is tried to sell a significant NPL portfolio in Romania with a estimated gross book value (GBV) of €3.5 billion.

• Other commercial banks (e.g. Piraeus Bank Romania, Eurobank EFG Group, NBG) will plan to liquidate large volume of NPL’s in 2015 and 2016, offering a significant buying opportunity.

October 15 5


Secured NPL – Romanian market challenges

• New market for secured NPL’s, banks are servicing NPL’s in-house.

• No past experience, limited established servicing platforms.

• Few local collection companies with on-ground management

expertise and international best practice.

• Few experienced real estate asset management companies (REO

management)

• NPL / REO Portfolios are spread nationwide and it is a dynamic

people driven processes

October 15 6


• Assets Securing

• Value Assessment

• Pricing Accuracy

• Costing & Timeline

• Repositioning / Adding value

• Facility Management

• Marketing & Sales

• Strategic Planning

• Valuation

• Acquisition

• Value Enhancement

• Supervision

• Administration

• Reporting

• Due diligence and pricing

• Underline assets valuation

• Collection management

• Insolvency process

• Restructuring process

• Reorganization plan

• Execution process

SECURED NPL

SERVICER

REO SERVICER

LOCAL PARTNER

ASSET MANAGEMENT

• Deal Sourcing

• Budget & Control

• Financial Analysis

• Financing

• Legal

• Accounting

• Institutional Reporting


Review

• Operational expenses

• Status Review &

Analysis;

• Enhancement

strategies (repositioning

/ redevelopment);

• Costing and Timeline;

• Recommend to the

client the best course of

action;

TAGOR

REO portfolio management

Divestment decisions

• Sell now

• Hold till recovery

• Develop by “ Add Value”

concept

Reliable valuation

• Existing assets

• New collaterals

A dedicated team to manage the REO Assets

Operations

• Management & Co-

ordination of all 3rd

Parties.

• Ongoing Reporting and

Monthly Status Updates

• Supervision of all activities

relating to authorities

• Rigorous financial

analysis of various

scenarios

• Supervision and execution

Legal and Finance


100% Equity

Senior Debt

Equity and

Junior Debt

Transaction

Discount

Senior Debt

Equity and

Junior Debt

Ag

ree

d T

ran

sfe

r V

alu

e

Current

Structure Year 1 Year 3/5

Asset Recovery Strategies

Asset Development Review:

case analysis, appraisal,

rationalization &

implementation plan

Asset Performance Plan:

Develop base case in asset

benchmarks

Asset Restructuring,

Implementation and institutional

reporting

Future Value

Creation

It’s All About Underlining Values


Introduction – Liberate Portfolio Solutions

Liberate is a vertically-integrated, full-service asset management company specialised in servicing portfolios of secured non-performing loans(“NPLs”) and real estate-owned assets (“REOs”)

Starting with intensive debt recovery at a minimum cost and through developing and executing an operating plan to maximise the value of REOs and/or single distressed real estate assets for our clients

Joint venture of the UK’s Poseidon real estate group and Romanian property asset management company Tagor

Full-service real estate asset management across SE Europe April 2015 www.liberate.solutions 10

© 2015, TAGOR

ALL RIGHTS RESERVED. This presentation is solely the property of Tagor. Any unauthorized reprint or use of this material is prohibited. No part of this

presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any

information storage and retrieval system without express written permission from the author.

Romania | Poland | Hungary | Croatia | Slovenia | Serbia | BIH | UK

Ofer Lieberson

Founder and Chairman

T: +40 31 620 08 28/ 29/ 30

M: +40 720 111 101

+972 544 777 304

E: [email protected]

W: www.liberate.solutions

If you require further information please contact:

Contact

mailto:[email protected]

Tagor london presentation speech october 2015

Investor Relations

Transcript of Tagor london presentation speech october 2015