RITTERWALD Advises Real Estate Portfolio Owner in Sale of Delinquent Tenant Receivables
RITTERWALD supported one of Germany’s leading municipal housing companies in selling their written down tenant receivables. The transaction involved a portfolio of 5,200 legally enforceable claims worth more than 15 million euros in aggregate. The individual receivables originated between the 1990s and the spring of 2016.
The project focused on finding a highly reliable factoring company while maintaining the client’s good reputation and on achieving an appropriate acquisition price.
A suitable bidder with an attractive acquisition offer was identified in a structured bidding process. Companies with uncollectible tenant receivables on their books will find that the present situation in Germany is to their advantage: due to the favorable economic climate, receivables packages of this size are relatively rare and meet with strong demand from financial service providers.
As of late November 2016, the receivables sold have been recorded in the buyer’s systems.
The parties contractually agreed to maintain strict confidentiality.
About RITTERWALD Unternehmensberatung GmbH
RITTERWALD is a delivery-focused consultancy with offices in Berlin and Frankfurt. We turn ideas into action. RITTERWALD has longstanding and in-depth knowledge of the real estate sector along the entire value chain. Operating at the interface between principal (the real estate sector) and agent (the energy, facility management, factoring industries), we optimize costs, processes and organizations and structure business models. RITTERWALD offers both buy-side and sell-side advisory within M&A transactions, ensuring a structured process and coordinating all professional services to facilitate successful deal closure. For further information, please visit: www.ritterwald.de.
