Equity fundraising by Eurocastle Investment Limited

BDO.LiveSite.Deals.DealTypeCapital markets
BDO.LiveSite.Deals.IndustryFinancial Services

BDO acted as reporting accountant on Eurocastle Investment’s €312 million equity share offer, which completed this week. Eurocastle invests in Italian non-performing loans and real estate related assets and related businesses, as well as selective real estate related investment opportunities in other European markets. It also has a substantial legacy German commercial property portfolio and European real estate related debt portfolio. Gross assets are in the order of €1.5 billion.           

The proceeds of the fundraising are to be used to fund further investments in Italian and other European real estate related assets, including debt investments and non-performing loans. This includes the intended acquisition, in conjunction with other affiliates of Fortress Investment Group, of UniCredit Credit Management Bank, which includes a portfolio of non-performing loans with a gross book value of approximately €2.4 billion and a non-performing loan servicing business. It is expected that Eurocastle’s proportion of the overall cost of this acquisition will be approximately €250 million.     

“BDO acted as reporting accountant on the prospectus relating to Eurocastle Investment’s recent €312m equity fundraising. They provided us with excellent advice and support as we prepared for the transaction and negotiated with the UKLA, and handled the reporting requirements very proficiently, including the implications of our US offering. I would have no hesitation in recommending them.”

Scott Berry, Senior Vice President, Fortress Investment Group, manager to Eurocastle Investment