M7 Real Estate and Mount Street have formed a new joint venture focused on the non-performing loan portfolio market.
The idea behind the joint venture – Mount Seven – is to unite M7’s asset management and asset underwriting skills and Mount Street’s loan servicing expertise. The business will also co-invest alongside its partners.
The business has already secured its first mandate and “expects to play a major role in the various up-coming sales across Europe”.
M7 has extensive, on-the-ground coverage in Europe with offices in London, Lisbon, Prague, Warsaw, Paris, Frankfurt, Copenhagen, Glasgow, Paris and Amsterdam and manages €1.7bn of assets totalling 35m sq ft.
Mount Street has offices in London and Frankfurt but services loans totalling €25bn across 14 European countries.
Bill Sexton, managing partner at Mount Street, said: “The tie up with M7 is a logical step as we continue to enhance our offering to investors in the NPL arena. There are few operating partners that are able to underwrite both the assets and the loans let alone service both parts of the NPL equation post-acquisition.”
M7 chief executive Richard Croft added: “The teams have worked together already on a couple of loan underwrites and the combination of the two skill sets really does in our opinion offer a unique and compelling service to investors in this space.”
