ACTIVITIES

Servicing of large and complex Real estate UTP loans

AREC team negotiates restructuring agreements with the borrowers in order to stabilize the Borrowers financials and the underlying assets condition, and then monitors the respect of the agreements previsions.

Support and implement decision making process

AREC team supports the Borrower to insure the correct execution of the Business Plan Strategy previously shared with the investors and the banks.

Revision of the development strategies

Where Real Estate Development projects are envisaged, we assess the best strategies to valorise the assets including the change of destination of use where necessary and mesure the different options to increase and optimize the assets value.

Project Monitoring

Supported by independants engineers an AREC dedicated team monitors the development projects. The process includes standardised reports providing an update on the activities performed and highlighting any issues that might have arisen.

Negotiations

With the support of leading real estate advisors AREC team helps the borrowers to achieve the best price when selling the assets. Alternatively, once the underlying assets value have been improved, AREC team helps the borrowers to refinance its’ debt or sell the exposure on the secondary market.

New Financing

We incentivize re-activation of the development through capex injection and we support, as well as we monitor, the Borrower during the administrative procedures in order to obtain urban planning permits required to pursue the development process. We help to implement the marketing strategies in order to promote the sale of the assets.

Underwriting advisory

AREC team support the investors during the competitive processes to acquire real estate backed portfolios. AREC team monitors the activity of the third party advisors (legal advisors, technical advisors, notary, valuers, etc.) and provides a detailed analysis of the files focusing on the loans structure, the feasibility of a restructuring negotiation as well as the valuation of the underlying assets (including technical analysis). The deliverables of this bottom-up analysis include detailed business plans with highlights on potential “red-flags” as well as consolidated Cash flow models

STRATEGIES

Aurora Recovery Capital manages UTP files with the objective to re-launch the underlying projects and stabilize the Borrower key financials allowing the total or partial repayment of the borrower debt.

This result is achieved through the negotiation of restructuring agreements (Ex.art.182 or 67 art. l.f.) and through other legal instruments pursuant to Italian law. Our purpose is to avoid a bankruptcy procedure.

AREC professionals are real estate professionals, engineers and lawyers (specialized in civil, administrative and penal law).

AREC team establishes good relationships with the Borrowers, this allowing to negotiate a restructuring agreement, monitor the respect of covenants and support the Borrowers in the sale process. The skills and the professionalism of AREC team throughout the process often allows to bring the borrowing company back to “in bonis”.