Belvedere SPV S.r.l. is a static cash securitisation of a EUR 2,541m portfolio of Italian non-performing loans managed by Bayview Italia S.r.l. and Prelios Credit Servicing S.p.A.

The portfolio backing the notes issued by Belvedere SPV S.r.l. was initially purchased from various Italian banks by several special purpose vehicles managed by Bayview Italia S.r.l and then sold through this transaction to the issuer, Belvedere SPV S.r.l.

Belvedere SPV S.r.l. will implement a real estate operation carried out by a company expressly incorporated pursuant to article 7.1 paragraph 4 of Law 130 of 1999 (“ReoCo”).

Although it cannot be currently quantified, the implementation of the ReoCo could be positive for the issuer as the ReoCo can add value to the properties and re-sell them on the market with a profit, therefore increasing recoveries for the issuer, while there are no additional senior costs for the issuer. Any costs in relation with the ReoCo will be made by the issuer only after the full reimbursement of the rated Class A notes and the Class B notes. The mere fact that the ReoCo bids in an auction could also stimulate other potential buyers to also bid instead of waiting until the next auction.

Financing for the ReoCo will be received from the ReoCo quotaholders (the three Bayview Global Opportunities Fund S.C.S. SICAV-RAIF sub-funds) to cover the costs related to auction deposits, the ReoCo’s operativity and the properties’ maintenance.

The maximum timeframe to resell the acquired properties is set to three years after the properties’ acquisition date. If the resale of the purchase property does not happen within this timeframe, the ReoCo shall grant an irrevocable mandate to sell the purchased property to a professional acting in the real estate sector and designated by the representative of the noteholders acting upon instructions of the committee.
Bayview Italia S.r.l. (“BVI”) has been appointed as property manager to carry out all the technical and operating support and coordination activities and the strategic advisory required to ensure the full operation of ReoCo.

The overall amount of purchases by the ReoCo is limited to EUR 40m at any time up to and including the Payment Date falling in June 2020, EUR 50m at any time up to and including the Payment Date falling in December 2020, EUR 65m at any time up to and including the Payment Date falling in June 2021, EUR 75m at any time up to and including the Payment Date falling in December 2021 and EUR 90m at any time thereafter. We will monitor the ReocCo activity based on monthly reporting.