Pepper Boards First Performing CRE Book

Posted 04-10-2016

Pepper UK is delighted to announce the recent boarding of its fourth UK commercial real estate (CRE) portfolio having been awarded the Primary and Special Servicing mandate by a syndicate of investors. The portfolio comprises around 1,000 performing loans secured on 2,000 CRE assets in the UK.

This portfolio represents Pepper UK’s fourth major UK CRE servicing contract since the creation of its CRE division and is its first made up entirely of performing loans. The portfolio is led at Pepper by Alison Higgs, Co-Head of Commercial Loan Servicing who commented "Having led our first non performing loan (NPL) portfolio since its migration in 2014, I am delighted to be asked to now run our first fully performing loan portfolio. This is a great opportunity to demonstrate our skills on a different asset class as we look to diversify our servicing business away from being predominantly focused on Non Performing Loans".

Mark Caplan, MD of CRE, said "The migration of this portfolio means we have now been mandated to service over £2.5bn of assets in less than two years and is a further endorsement of our commercial loans servicing business. Most importantly, as we look to grow the business this transaction establishes our credentials in maintaining loan performance, as opposed to maximising recovery from defaulted payers".

Richard Klemmer, CEO Pepper UK, added "Winning this mandate enables the CRE team to continue on its growth path, as the commercial loan servicing sector begins to focus on performing loans as opposed to the large NPL trades that have been a feature of the market in recent years".

Pepper UK, via its CRE loan servicing arm, Engage Commercial, is one of UK’s leading providers of loan servicing, debt advisory and asset management of third-party loans portfolios, secured against small and medium sized CRE.