Deutsche Bank affiliate lauds successful NHMFC bidding

DB Real Estate Global Opportunities IB LP, the investment fund affiliated with Germany’s Deutsche Bank AG, has expressed satisfaction over its successful bid for mortgages sold recently by the National Home Mortgage Finance Corp. (NHMFC).

DB Real Estate is purchasing a 51-percent interest in the loans from NHMFC and has agreed to form a special purpose vehicle (SPV) to manage the restructuring and collection of the loans.

Morgan Laughlin, DB Real Estate head for Non-Japan Asia, said they are pleased to have been chosen in the competitive auction to acquire a controlling interest in the non-performing loan (NPL) portfolio of the NHMFC.

"We are looking forward to working closely with the NHMFC to improve the servicing efficiency for this portfolio of home mortgages for the benefit of the borrowers, NHMFC and the Philippine taxpayers, "he said.

DB Real Estate is the largest real estate fund manager in the world with more than $54 billion assets under management, focused on the value added real estate investment opportunities in Europe, Asia and the Americas.

The NHMFC announced Tuesday that it has sold some $240 million (P13.4 billion) worth of non-performing residential mortgage loans to DB Real Estate. The sale of the NHMFC assets was done through a competitive bidding.

The portfolio of the loans sold by the NHMFC included the residential mortgage loans to the most delinquent borrowers in the Unified Home Lending Program (UHLP).

All the UHLP loans sold were originated by NHMFC between 1987 and 1996 to borrowers who were members of either the Social Security System (SSS) or the Home Development Mutual Fund (HDMF).