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Non-performing loan portfolio that has an impact

In 2021, Southrock acquired a non-performing loan portfolio secured by 28 properties across Greece and Romania with a total legal claim of € 120 million. The portfolio comprised loans from 13 Special Property Vehicles owned by a single Ultimate Beneficial Owner (UBO), consisted of high value, mainly commercial properties, including office units and logistics centers.

Southrock implemented a value-add workout strategy, leveraging the portfolio’s unique features and a collaborative relationship with the debtor. This approach involved consensual asset sales in the open market, covering marketing and other costs through rental income, an incentivization scheme for the UBO and hands-on asset management by Southrock to proactively figure out solutions.

The strategy resulted in investment overperformance, expedited capital recovery by avoiding distressed sales through auctions, the salvage of the UBO’s operations with employee retention, and significant tax benefits to the Greek State through full repayment of SPVs’ taxes and other obligations.

The case exemplifies Southrock’s ability to positively impact communities and economies with a favorable end result for all the involved stakeholders.