Glitnir to sell its K/S portfolio and controlling 51% share in Reviva Capital S.A.
Glitnir hereby announces its intention to dispose of its K/S portfolio and its shares in the Luxembourg-based asset manager, Reviva Capital S.A. Glitnir has mandated KPMG to assist in the sales process and interested parties should contact the relevant individuals below.
- K/S LLPs are a Danish market product that allows Danish high net worth and high income generating individuals to make tax-efficient investments in commercial real estate. Glitnir, like other Icelandic banks, developed a significant K/S business prior to the onset of the financial crisis.
- Glitnir’s portfolio comprises 2nd ranking term loans with an aggregate outstanding nominal balance of c.€60m secured on retail, leisure and industrial properties in the UK, Germany and Finland. The loans are also backed with uncalled capital and personal guarantees from the K/S partners.
- The portfolio is considered stabilised after several years of restructuring, with a WAL of 3 years and weighted average interest of 6% fixed.
Controlling 51% share in Reviva Capital (“Reviva”)
- Reviva is a mid-market European real estate loan servicing and workout platform with country expertise across the Nordics, Germany and the UK, and is a market leader in K/S workout.
- Reviva currently manages Glitnir’s K/S portfolio and, historically, Glitnir’s other Luxembourg assets, as well as mandates for other banks and investors. Since 2010 Reviva has managed the workout/run-off of €1.8bn of European real estate and other loan exposures.
- As Reviva’s mandate for Glitnir is nearing completion Glitnir has decided to dispose of its controlling 51% stake (Reviva’s management holds the other 49%) at the same time as the K/S portfolio. The stake could be sold with or separately to the K/S portfolio. If separately, Reviva can continue to service the K/S portfolio if required by the acquirer of the K/S portfolio.
- Reviva operates its own proprietary bespoke loan servicing and workout management system and employs 18 staff: 16 in Luxembourg and 2 in its Copenhagen office. Reviva is regulated by the financial authorities of Luxembourg (CSSF) as a PSF (Professional Financial Sector Company).
Interested parties are requested to contact KPMG for further information: