NEW YORK, July 15, 2019 /PRNewswire/ -- Nieuw World Capital's investment view is "long" on Italy.
Italy was the most active NPL market last year, half the total volume of European NPL's were transacted in Italy.
The Italian economy and political environment have been criticized recently as an unpredictable market.
In April of 2018 NWCM was quoted "precedent has been set regarding return on investment in Italian assets by PE investment."
Northern Italian property is being acquired at a brisk pace by Private Equity Investors and Global UHNW's, Nieuw predicted a 5% to 7% increase in values.
This increase did occur the last 12 months and IRR goals have been met.
Other favored International investment regions like Portugal have surpassed pre-crisis values.
"International investors are drawn to the discount in regions like Tuscany which normally have high barriers to entry."
Tax incentives also apply for domiciled investors
ECB regulatory pressure is mounting under the new IFRS 9 reporting standard and has increased the pace of sales.
Recent civil code modifications in Italy surrounding asset recovery have also changed significantly.
The Civil Code changes helped spur the Pimco $20 Billion JV deal with Uni-Credit in 2016.
NWCM has many years expertise in real estate development and construction and co-invest with our partners including UNHN and PE investors.
NWCM is a special situation's buyer of assets in various countries.
Our objective is to work proactively with the banks and partners to provide Asset Solutions that optimize:
a. Higher recovery through asset expertise
b. Loss Mitigation expertise
c. Eliminate Moral Hazard with existing borrowers
Nieuw's bespoke access in Europe brings historical yields outside of the compressed returns in the USA due to this RE cycle's mis-allocation of capital.
Distressed alternatives in Europe are a prudent and diverse allocation for Global Investors.
Italy's' discount and current arbitrage are an excellent hedge to U.S. alternatives.
In addition to NPL assets, The UTP market in Italy is growing very quickly. UTP's are "Unlikely to Pay" Loans that are recent or potential defaults.
The Italian Universe of Identified UTP 83 Billion
Italy sold a total GBV of EUR 103.6bn in 64 deals, according to Debtwire NPL Database data.
SOURCE Nieuw World Capital Management