When the credit holders set up their own Re.O.Co, the main goal is to guarantee a recovery cash flow on those debt positions secured by real property and which will be put up for auction so as to curb depreciation and shorten the selling time frame.
The Re.O.Co. bases its main activity on setting up the auction and paving the way for as many bidders as possible.
Should no third party be interested, the Re.O.Co. buys the property itself, thus avoiding a cut in the sale price that could cause a reduction/ delay in collection timing.
CAF operates in the Re.O.Co. process with the backing of the group FT Real Estate, to deal with setting up the auction, the initial steps needed to be taken by potential bidders, coordination of all tasks to be carried out by the property manager during the repossession and management phase, all bureaucratic and administrative paperwork along with coordinating the brokers assigned to the sale.
Laying down the Guidelines.
Screening the portfolio;
Legal analysis of selected positions;
Desk top appraisal of the property of interest;
Draw up a first draft of the Business Plan.
Managing the Auction.
Monitor auctions already set;
Technical due diligence based on the outcome of the court appraisal;
Internal inspection of selected properties;
Estimate selling price and draw up final Business Plan;
Promote the purchase of property up for auction.
Taking Part in the Auction.
Manage participation in the auction;
Fulfill all post-auction formalities;
Release and repossess property.
Technical and administrative;
Take custody of and secure the property;
Maintenance and works;
Monitor, settle payment and liaise with service suppliers;
Plan and oversee any work to be done.
Selling the property.
Put up for sale on specialized Internet sites;
Sell through company broker network;
Follow through on preliminary and final deed of sale.