Towards A "New" Real Estate Securitisation

Recent updates on the securitisation of proceeds arising from ownership of real estate assets introduced by Italian Budget Law 30 December 2018, no. 45 and Law Decree 30 April 2019, no. 34 (so called "Growth Decree").

The role of ReoCo in the assignment of non-performing loans

The first update introduced by the legislator concerns a full systematisation of the Real Estate Owned Companies ("ReoCo") in the context of securitisations.

These vehicles manage real estate assets securing non-performing loans: by joining enforcement proceedings, ReoCos acquire the ownership of the real estate assets and deal with their management and subsequent sale, in order to satisfy the interest of the holders of the notes issued by the securitisation vehicle company. ReoCos owning the real estate asset until it has been sold avoids any risks on the securitisation vehicle company and safeguards its insolvency remoteness.