- Portfolio comprises 270 properties with outstanding principal loan balance of €600 million
- Marks second collaboration between Pepper and Arrow Asset Management
Dublin, 19 March 2013: Pepper Finance Corporation (Ireland), which trades as Pepper Asset Servicing, has been appointed by Danske Bank (Danske) to provide special servicing and asset management on a significant portfolio of Irish commercial property with an aggregate outstanding principal loan balance of over €600 million.
This is the second major commercial real estate asset management contract won by Pepper Asset Servicing (“Pepper”) since the company was established in Ireland in September last year and follows an announcement made in January 2013 that Pepper had been appointed to manage the €380 million Pittsburgh portfolio of Irish loans on behalf of Carval Investors. The deal also marks the second collaboration between Pepper and Irish commercial real estate management firm, Arrow Asset Management.
The 270 properties in the portfolio are currently in receivership and under the deal, Pepper, in conjunction with Arrow Asset Management, will oversee the rationalisation of the receivership process for the portfolio and special servicing on behalf of Danske. In addition, the company will provide asset management on the portfolio.
Paul Doddrell, CEO of Pepper Ireland, said the deal marks another significant development in the company’s growth strategy for Ireland. “We’re delighted to be partnering with Danske and this contract win represents a further endorsement of our expertise to provide a unique approach to managing commercial portfolios in this market. We continue to be very focussed on growing the business in Ireland to establish it as a leading European loan servicing and real estate asset management operation and have recently invested significantly in our people and systems to help us realise this ambition.”
Peter Hughes, Head of Danske Bank’s non-core unit said, “Since establishing our non-core unit in 2012, we have worked to identify the right strategy for each element of our loan book as we manage down our exposure to the Irish property market. This partnership with Pepper Asset Servicing allows us to bring additional specialist expertise to the management of certain properties already in receivership.”
Brian Berg, Head of Commercial Property at Pepper said: “We continue to see significant servicing and asset management opportunities in the Irish market and to reflect this have invested significantly in expanding our real estate and asset management team. Our strategic partnership with Arrow has also given us the unique ability to provide end-to-end commercial real estate asset management services, which will be invaluable in capitalising on the current market opportunities.”
Established in September 2012, Pepper Asset Servicing is Ireland’s leading servicer of third-party loan portfolios, asset management and advisory services spanning a range of asset classes including residential mortgages, commercial mortgages, auto finance, unsecured loans and equipment finance. The company currently has portfolios with over €1 billion in receivables under management. Pepper in Ireland is part of the Pepper Group, a global financial services business, specialising in Lending, Advisory and Asset Management Services. The Group currently has over €5 billion of assets under management. Pepper is ranked by S&P as a “STRONG” Residential Loan Servicer and is included on S&P’s Global Select Servicer List.
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About Pepper Asset Servicing
- Established in September 2012, Pepper Asset Servicing is Ireland’s leading servicer of third-party loan portfolios and provider of asset management and advisory services spanning a range of asset classes including residential mortgages, commercial mortgages, auto finance, unsecured loans and equipment finance.
- The company currently manages portfolios comprising over €2 billion in total receivables under management.
- Pepper Asset Servicing is registered in Ireland as Pepper Finance Corporation (Ireland) and is regulated by the Central Bank of Ireland (CBI).
- Pepper in Ireland is part of the Pepper Group, a global financial services business, specialising in Lending, Advisory and Asset Management Services.
About Pepper Group
- Pepper Group (“Pepper”) is Australia’s largest non-bank residential mortgage lender (as measured by total assets under management), a leading provider of specialty residential mortgage financing and a highly experienced third-party loan servicer and asset manager.
- The Group currently has approximately A$6.2 Billion of loan and lease assets under management (comprising residential mortgages, commercial mortgages, equipment leases, small business loans, personal loans and car loans).
- Since establishing itself as a specialist residential mortgage lender in the Australian market in March 2001, Pepper has originated more than $3.8 billion of specialist residential mortgages in Australia.
- In 2011 Pepper acquired GE Capital’s Australian and New Zealand mortgage lending businesses, which comprised a portfolio of approximately A$5.0 billion of Australian and New Zealand residential mortgages. This transaction was one of the largest whole loan transactions in Australian history.
- In September 2012, Pepper established Pepper Asset Servicing in Ireland, having acquired the Irish mortgage business of GE Capital and in February 2013 the Group entered the Spanish market with the acquisition of the Spanish consumer loan business of Celeris.
- Pepper’s current wholesale funding partners include Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation.
- Other funding partners include global investment banking and securities firm Goldman Sachs
- In addition to lending and servicing its own mortgage portfolio, Pepper provides third party servicing of various types of mortgages, leases and unsecured loan products.
- Pepper is jointly led by Executive Chairman, Mike Culhane, and Managing Director & CEO, Patrick Tuttle.
- Pepper is regulated by the Australian Securities & Investments Commission (“ASIC”).
- Pepper is ranked by S&P as a “STRONG” Residential Loan Servicer and is included on S&P’s Global Select Servicer List.