Asset manager Distressed Capital Management bought more than $207 million in reperforming and nonperforming whole loans from the Royal Bank of Scotland in late February, the Irvine, Calif.-based company announced Thursday.
DCM, which is a subsidiary of Pluto Sama, said the deal took more than a year of work and was finalized on Feb. 25. The acquisition includes loans with over $200 million of unpaid principal balance located in 43 states, DCM managing director Rod Colombi said in a news release.
"This acquisition represents high investor value on multiple dimensions," Colombi said. "At 5.3% the blended cost of funds relative to leverage is very low cost which contributes greatly to a range of equity returns that are high from the low to the high end." RBS is also selling related real estate owned.
Colombi said that the loan features a ratio of REO to total assets of more than 20% and an average loan size of $200,000.
"The assets have been managed at a high level to date and our managers at DCM see real opportunities to improve performance and enhance cash flow and return," he added.
The deal was secured with the assistance of DCM's affiliate companies, including BP Law Group LLP and Wilson.
