Eurocastle has invested or committed approximately €218 million in 22 pools of Italian performing and non-performing loans, 5 real estate funds and a distressed bond.
In October 2015, Eurocastle acquired a share of doBank, formerly UniCredit Credit Management Bank S.p.A. (“UCCMB”) together with a pool of NPLs with Gross Book Value (“GBV”) of €3.3 billion, investing €246 million. doBank is the largest third party loan servicer in Italy with over €45 billion GBV under management and a 10 year servicing contract with UniCredit on future SPL & NPL below €1 million and select pools above €1 million GBV.
On July 14, 2017, doBank completed its IPO at €9.00 per share. Eurocastle sold 19.1 million shares generating approximately €146 million of net proceeds to Eurocastle, retaining 20 million shares.
We believe that financial crisis created a significant supply-demand imbalance in Italy and a truly unique investment opportunity for Eurocastle. Italian banks are under pressure to dispose approximately €200 billion of non-performing loans to create liquidity and meet regulatory requirements set forth by the European Central Bank. In addition, in 2015 / beginning of 2016, the Italian Government implemented a set of regulatory reforms which we believe will increase the NPL sales.