Italian Investments

Performing and Non-Performing Loan Pools (“PL” & “NPL”)

To date, Eurocastle has invested or committed €277 million to acquire 23 loan pools with a combined gross book value (“GBV”) of approximately €25 billion.

doBank

In October 2015, Eurocastle has invested €246 million in 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. doBank is the largest, highest rated by S&P – Strong & Fitch – RSS1-/CSS1-, 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.

In October 2016, doBank acquired Italfondiario, the second largest independent NPL servicer in Italy. Post-acquisition, doBank and Italfondiario will represent the largest independent banking group in Italy specialized in management of performing and non-performing loans. Together, doBank and Italfondiario manage over €81 billion GBV of loans, have the highest rating from S&P (Strong) and Fitch (CSS1-/RSS1-) and hold a leading position among other Italian independent NPL servicers.

On July 14, doBank completed its IPO at €9.00 per share. Eurocastle sold 19.1 million shares generating approximately €146 million net proceeds to Eurocastle retaining 20 million shares.

Closed-End Real Estate Fund Units

Eurocastle invested €67 million in five closed-end Italian Real Estate Funds and received €50 million proceeds up to the end of Q3 2017:

  1. Fund Investment I – invested €22.2 million for a 7% share in UniCredit Immobiliare Uno. The Investment already returned 47% of our capital.
  2. Fund Investment I – invested €15.4 million in 2 redevelopment projects in Rome
  3. Fund Investment III (SOLD) – invested €10.8 million for a 27% share in an unliseted mixed-use fund.
  4. Fund Investment IV (SOLD) - invested €12 million for a 89% share in an unlised mixed-use fund.
  5. Fund Investment V - invested €5.8 million for a 50% share in a redevelopment project in Rome.