August 8, 2019
Commercial Real Estate Direct Staff Report
First Financial Network Inc., which two years ago was tapped by Ukraine's Deposit Guarantee Fund to help liquidate troubled assets held by that country's failed banks, has launched an effort to sell $1.35 billion of real state and nonperforming loan assets held by those institutions.
The Oklahoma City loan-sales specialist cut its teeth in that world by helping the RTC liquidate soured loans from troubled lending institutions during the United States's savings and loan crisis. It is one of two U.S. contractors to do work in Ukraine, with the other being DebtX of Boston.
Both have been offering and selling portfolios of assets. First Financial late last year sold $235 million of assets - corporate and commercial real estate loans - through four pools to a Ukrainian investor backed by a Western European investment group. The company is targeting European, as well as U.S. investors. That sale was the first ever by the Deposit Guarantee Fund and the country's National Bank Ukraine.
The upcoming offering has been divided into three pools, the largest of which includes a sports stadium - Chornomorets Stadium, with a seating capacity of 35,000 in Odessa. The property was constructed in 2011 at a cost of some $500 million. The pool also includes a 150-room hotel, retail center, office space and fitness center, as well as 40 nonperforming loans.
Another pool is comprised of 678 nonperforming loans with a balance of $398 million that were held by 21 failed banks, while the third has 290 nonperforming loans totaling $413 million taken from a dozen other banks. All the loans are backed by real estate as well as equipment, vehicles and property rights.
For details on the upcoming offering, visit www.ffncorp.com.