Värde Partners Closes Commercial Real Estate Loan in Phoenix

MINNEAPOLIS – Värde Partners, an alternative investor in broad strategies including commercial and residential mortgage markets, today announced that it has closed on a newly originated $13.4 million loan secured by a 284 room hotel adjacent to MetroCenter Mall located in Phoenix, Arizona.

The loan provides short term capital to reposition the hotel as a Hilton Double Tree, which helps the borrower execute their strategy in a dynamic and improving submarket of metropolitan Phoenix. “This deal is a great opportunity to provide flexible capital to help an institutional sponsor re-brand a solid physical asset,” said Jon Miller, Director of Originations for Värde Partners.

Värde’s entrance into the commercial real estate loan market follows the retraction of traditional banks from non-core markets and their divestiture of non-core businesses, leaving many credible borrowers without access to needed capital. “The MetroCenter Mall redevelopment is an exciting catalyst for this hotel. High-density, urban repositioning is a natural fit for our capital,” said Jim Dunbar, a Managing Director of Värde. Värde’s mortgage business is a provider of capital to the commercial and residential mortgage markets, and focuses on providing flexible capital and certainty of execution.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment adviser focused on investing capital and resources across multiple segments and markets that includes corporate assets and sovereign debt, residential mortgages, real estate, specialty finance and transportation. Värde sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors, and private clients.

Värde Partners Closes on Sale of NewDay

LONDON – Värde Partners, the $12 billion global alternative investment firm, today closed on the sale of NewDay, a provider of consumer credit in the U.K., to funds managed and/or advised by private equity firms Cinven and CVC Capital Partners. The sale was announced in October 2016.

Värde acquired NewDay (formerly SAV Credit Ltd.) in 2011 and supported the management team through both the rebranding of the company to NewDay and the acquisition of Santander’s U.K. retail cards business in 2013.

“We are pleased to have helped transform NewDay,” said Elena Lieskovska, Senior Managing Director and European Head of Värde’s Specialty Finance business. “Through our investment, we have been able to grow NewDay into a significant provider of financial services in the U.K., and I’m confident that it will continue to thrive and deliver the kind of service its customers and partners currently enjoy.” During the time Värde held the business, NewDay’s receivables grew from £600 million to £1.6 billion. NewDay now serves more than 5 million customers.

“Consumer finance continues to be a focus for Värde. Since our acquisition of NewDay in 2011, we have acquired and grown multiple consumer finance businesses,” said Rick Noel, Partner and Global Head of Värde’s Specialty Finance business. “NewDay is a great example of how firms with strong market knowledge and underwriting capabilities can find growth opportunities, especially as banks reduce their consumer lending. We expect this trend to continue over a number of years,” he continued.

Värde’s private funds have a number of other holdings in consumer finance including significant equity stakes in WiZink, a consumer specialist bank in Iberia, and Latitude Financial Services, a leading consumer finance business in Australia and New Zealand. Värde also recently announced its intention to cause certain of its private funds to purchase CitiFinancial Canada, a leading community-based lender in Canada.

About Värde Partners:
Värde Partners is an $12 billion global alternative investment adviser focused on investing capital and resources across multiple segments and markets that includes corporate assets and sovereign debt, residential mortgages, real estate, specialty finance and transportation. Värde sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors, and private clients.

About NewDay:
NewDay is a leading consumer finance provider, specialising in the U.K. credit card market. With more than 5 million customers, NewDay provides products in two unsecured credit market sectors – Near-Prime and Co-Brand. In the Near Prime sector, NewDay has three products – aqua, marbles and Opus. In the Co-Brand sector, NewDay provides credit card products in partnership with several of the U.K.’s established retailers including Debenhams and House of Fraser.

Värde Partners Names New Partners – Brian C. Schmidt and Jon A. Fox are now Partners in the firm

MINNEAPOLIS and LONDON – Värde Partners, the $12 billion global alternative investment firm, has named two new Partners. Brian C. Schmidt, Head of the Värde Mortgage Business and Jon A. Fox, Global Head of Business Development and Investor Relations have both been elected to Partnership. They join eleven other partners located around the globe.

“We’re honored to extend partnership to these two impressive leaders,” said George G. Hicks, Founder, CEO and Co-CIO of Värde Partners. “They each have played instrumental roles in spearheading compelling business opportunities and each has developed and lead strong teams. We’re confident these two can help extend the success of Värde into a second quarter century,” he continued.

Brian Schmidt joined the firm in 2005 and is based in Minneapolis. He manages the firm’s mortgage investments in the commercial and residential sectors. Brian’s previous roles at Värde included leadership roles in Real Estate and Structured Products. He has served on a number of boards of portfolio companies owned by the Värde funds. Brian serves on the Board of the Association of Mortgage Investors and on the Board of Advisors for University of Wisconsin’s Graaskamp Center for Real Estate. Brian received a B.S. in Finance from the University of Minnesota’s Carlson School of Management and an M.S. from The London School of Economics and Political Science.

Jon Fox joined the firm in 2013 and is based in London. He leads the global team responsible for developing relationships with and serving investors across the Americas, Europe, the Middle East and Asia-Pacific. In addition, he leads the product development function for the firm, delivering opportunities across the firm’s platform and strategies to help investors achieve their goals. Jon received a B.A. in Political Science from the University of Colorado and an M.B.A. from Columbia Business School.

Värde Partners Closes Commercial Real Estate Loan in Kansas City

MINNEAPOLIS – Värde Partners, an alternative investor in broad strategies including commercial and residential mortgage markets, today announced that it has closed on a newly originated $32.5 million loan secured by an office tower in Kansas City, Missouri.

The loan provides capital to support recent leasing activity, which should effectively position the 60% occupied property to reach stabilization over the next few years. “Given the recent economic and demographic momentum in downtown Kansas City, the opportunity to finance this CBD property was a great fit for our platform,” said Jon Miller, Director of Originations for Värde Partners.

Värde’s entrance into the commercial real estate loan market follows the significant retraction of traditional banks from non-core markets and their divestiture of non-core businesses, leaving many credible borrowers without access to needed capital. “This loan reflects our investment thesis to provide commercial mortgages to borrowers who need flexible capital and timely execution,” said Brian Schmidt, a Partner of Värde. Värde’s mortgage business is a prominent provider of capital to the commercial and residential mortgage markets, and focuses on providing flexible capital and certainty of execution.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world including New York.

Värde Partners Completes $208 Million Issuance of Notes Secured by Real Estate Loans and Assets

MINNEAPOLIS – Värde Partners, an alternative investor in broad strategies including commercial and residential mortgage markets, today announced that certain of its subsidiaries completed the issuance of $208.5 million in notes secured primarily by real estate loans and assets. The notes yield 3.60%.

“We are very pleased with the execution of this transaction and the strong demand for the bonds demonstrates both the strength of Värde’s mortgage platform and the quality of the underlying portfolio,” said Partner Brian Schmidt.

The securitization -VSD 2017-PLT1 is the fourth securitization executed by Värde Partners. The VSD 2017-PLT1 was unusual in that notes are primarily secured by a pool of seasoned performing and sub-performing secured and unsecured commercial loans. The notes are rated BBB- by Kroll. The structure also allows the Issuer greater oversight of the Servicer by providing consent rights over certain actions that the Servicer might take in respect to the assets. Typically, within Liquidating Trust structures, these actions would be pre-agreed to through the development of business plans for each asset.

“With this structural nuance, Värde will be able to provide the oversight of the servicer that will benefit both bondholders and the fund’s limited partners,” said Jeff Thuringer, Senior Managing Director.
The portfolio consisted of $378 million of outstanding mortgage balance through 201 individual assets. Over 93% of the portfolio was performing as agreed.

Credit Suisse advised the transaction.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit- oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world including New York.

Värde-Controlled Dospuntos Acquires Vía Célere for €90 Million

MADRID – Dospuntos and Vía Célere today announced an agreement for Dospuntos, the real estate development company, to acquire Vía Célere, a Spanish development and construction company for 90 million euro.

The transaction unites two strong homebuilders in Spain and positions the resulting group on an accelerated growth path. The new company will focus on providing integrated services in this sector as well as strengthening its industrialization and energy efficiency processes — areas in which Vía Célere has an extensive track record as a pioneer. The combined company will operate under the trade name of Vía Célere and own a land portfolio of over 1,000,000 square meters.

With a focus on increasing its presence in the Madrid and Barcelona markets, Vía Célere, which is owned by Juan Antonio Gómez Pintado, will integrate all its land portfolio, real estate development activities and new construction currently under way in Spain with Dospuntos. Dospuntos portfolio includes land that will position the new combined company for continued development well into the future.

Currently the President of both Asprima (Madrid developers association) and APCE (Spain’s national association of developers), Mr. Gómez Pintado will become both chairman of the board of directors and managing director of the combined company, taking over from Javier Eguidazu in this position, who will continue to work with Värde Partners in an advisory capacity.

Tim Mooney, Global Co-Head of Real Estate for Värde Partners commented, “Since leading the restructuring of Grupo San Jose, we have made significant strides in streamlining Dospuntos real estate business and positioning it for growth in the recovering Spanish residential market. Today’s acquisition is consistent with and further accelerated that growth. Juan Antonio and his team have a first class track record in delivering over 12,000 high quality homes in the Spanish market both through Agofer and most recently Via Célere. We are excited that with his operational excellence and deep sector experience Juan Antonio will lead the company going forward.”

Tim Mooney added, “We thank Javier for leading and positioning the company through this transaction. He has done a fantastic job over the past 24 months first in advising on our acquisition and later restructuring the business and strengthening the Dospuntos portfolio of land. Without his efforts, today’s acquisition of Via Célere would not have been possible.”

Vía Célere was advised by from IREA and Uría. Dospuntos was advised by Deloitte and Garrigues.

About Dospuntos:
Dospuntos is a new generation real estate development company resulting from the insolvency and restructuring of Grupo San Jose, the predecessor parent company. Värde acquired a stake in Grupo San Jose via the acquisition of distressed debt originally issued to fund the group’s leveraged buy-out of Parquesol in 2006, the height of the Spanish housing market. The Värde-led restructuring saw the spin-off and wind down of non-core assets and activities and the re-launch of the residential development business under the name Dospuntos.

About Via Célere:
Vía Célere was founded in 2007 by Mr. Juan Antonio Gómez Pintado to focus on international residential development following his sale of Agofer, a Spain focused residential developer, in 2006, when this company was delivering 600 dwellings per year. Via Célere re-entered the Spanish residential market following the onset of the Spanish housing crisis. Since then, it has developed and delivered 880 units and has additional 1,000 units under production or in land ready to be developed.
In 2011 the Vía Célere Foundation was created in order to foster innovation in buildability under the standards of sustainability and energy efficiency. Today, all developments undertaken by the company boast the highest energy rating (A). In 2015, the group launched Conspace, a company specialized in industrialized construction, with the objective of innovating in methodologies and technologies that provide competitive advantages in the final quality of the dwellings and savings in construction times.