- Albulus CREDIT
- Albulus OPPORTUNITIES
A dedicated investor specializing in German commercial real estate debt
As part of its distressed opportunities strategy, Albulus manages three customized investment mandates on behalf of one international and two German investors, targeting investments in nonperforming real estate loans. Since its establishment in 2011, Albulus has invested EUR 300 million equity capital in thirteen successful transactions. The Albulus team has extensive expertise in the acquisition and workout of loans secured by
commercial property in Germany. It is headed by company founder Dr. Ruprecht Hellauer and his longstanding business partners, Dr. Tobias Friedrich and Christoph Schröder. Over the past 12 years, the management team has overseen investments in real estate debt with a nominal value of more than EUR 2 billion, and has managed loan workout with a volume in excess of EUR 1.5 billion.
By selling maturing loans, banks can, in value-preserving manner, reduce their exposure to maturing real estate loans that they are no longer interested in prolonging.
However, borrowers are given sufficient time to fully repay the loans and to release their equity through refinancing or the sale of the property. Albulus CREDIT thus generates attractive returns while limiting risk exposure for the fund investors.
The Albulus CREDIT fund opens up a new market segment, reconciling banks’ interest in optimising capital allocation with institutional investors’ need for capital-efficient, tax-transparent and attractively yielding investment opportunities. The investment advisor of
the Albulus CREDIT fund is a joint venture between Albulus Advisors Germany GmbH and Acathia Capital GmbH (www.acathia.com). The respective areas of expertise of the two joint venture partners complement one other perfectly:
Acquisition, loan workout and asset management are handled by Albulus, while fund structuring and investor support are the responsibility of Acathia Capital, an alternative investment manager specialising in the financial services sector.
Albulus CREDIT focuses on the secondary market for commercial real estate loans, currently an underdeveloped subsegment:
Performing loans that will not be, or have not been, repaid by the borrowers upon maturity, and which banks are no longer interested in prolonging
Investment quality due to first-rank mortgage on attractive German commercial real estate assets with a stable cash flow
Loan-to-value ratio capped at 85 percent
Offered by run-off banks and restructuring units or out of non-strategic loan books
Within its customised distressed opportunities investment mandates, the Albulus team structures investments in nonperforming loans (NPLs) and creates significant value for its predominantly international investor base through effective loan workout and proactive asset management. The nonperforming loans are acquired directly from banks at a discount to the outstanding loan amount and the value of the collateral.
They therefore represent a deep value investment opportunity. Value creation is achieved through a particularly effective loan workout in addition to proactive asset management designed to enhance the value of the underlying real estate collateral. This two-pronged approach, expertly implemented by an experienced team, generates attractive returns for investors, and facilitates the acquisition of debt at fair market prices.
Under its Albulus Distressed Opportunities investment mandates, the Albulus team focuses on nonperforming loans, its wide-ranging experience of the loan workout and property asset management assuring investors of a high level of value creation:
Albulus CREDIT and Albulus Distressed Opportunities
Managing Partner of Albulus CREDIT GmbH and
Albulus Advisors Germany GmbH
Dr. Ruprecht Hellauer, the founder and Managing Partner of Albulus, has more than 20 years of real estate experience, including 13 years of investment experience in commercial real estate loans. Ruprecht holds a diploma in business administration (lic. oec. HSG) from the University of St Gallen, Switzerland, an MBA from the University of Chicago, and a PhD in business administration with specialisation in real estate from the University of Vienna. He began his career as a property developer at Gerald Hines in Berlin, before joining Feri Real Estate as an equity partner. He was later appointed Managing Director of DTZ Investment Advisers. Prior to the establishment of Albulus in 2011, Ruprecht in 2004 co-founded Lohnbach Investment Partners, the German investment arm dedicated to NPL investments for Soros Real Estate Investors.
Dr. Tobias Friedrich has over 20 years of experience in loan workout, including more than 10 years in the area of nonperforming real estate loans.
Tobias completed his law degree at Ludwig-Maximilians-Universität in Munich and was subsequently awarded a PhD in fiscal constitution. Prior to his appointment as Head of Loan Workout at Lohnbach Investment Partners, he held various management roles in the area of workout and property finance at Bayerische Landesbank, ultimately managing a commercial property financing portfolio of EUR 2 billion. Tobias has been part of the management team of Albulus since it was established in 2011.
Christoph Schröder studied economics at Ludwig-Maximilians-Universität in Munich and obtained an MBA from Colorado State University. He began his professional career in the acquisitions department of Lohnbach Investment Partners in 2007, before joining the Corporate Finance Real Estate M&A division of KPMG. Christoph has been part of the management team of Albulus since the company was founded in 2011.
Henning Giesecke has close on 30 years of experience in banking and restructuring. He holds several supervisory board positions in Germany and abroad. Until 2009, he was Chief Risk Officer at UniCredit S.p.A. in Milan and at HypoVereinsbank AG in Munich, as well as being a member of the Executive Board of HVB Group. Henning holds a diploma in business administration from Ludwig-Maximilians-Universität in Munich.
Wallace Mathai-Davis has more than 25 years of experience in international asset management and as a senior banking executive who has worked in North America, Asia, Europe, Eastern Europe and Latin America. Prior to his appointment as chairman of Shepherd Kaplan, Wallace Mathai-Davis was a principal owner and managing partner of the GIA Group, a New York-based investment company specialising in advisory services for banks and asset managers. The company’s client base includes financial institutions in the USA, China, the EU and Ukraine. Wallace holds a PhD and an MA from Princeton University and graduated maxima cum laude from the University of Notre Dame in Paris with a BA in philosophy and modern languages.
A co-founder of the Albulus CREDIT fund, Dr. Thomas Schmitt is responsible for investor relations and fund structuring. Since 2013, he has been Managing Partner at Acathia Capital, an investment management firm specialising in the financial services sector. In 2003, he founded Augur Capital, the first private equity company in Europe to specialise in investments in banks and insurance companies. Prior to this, he was responsible for the global health and accident insurance business of Winterthur as a member of the Executive Board. A graduate in business administration, Thomas holds a PhD in political science and began his professional career at Deutsche Bank and McKinsey.
Expertise in commercial real estate loans
With its extensive experience in nonperforming real estate loans in Germany, the core Albulus team has been working successfully on investments for more than 12 years.
In 2004, Soros Real Estate Partners and Dr. Ruprecht Hellauer founded the joint investment platform Lohnbach Investment Partners to invest in nonperforming commercial real estate loans in Germany.
With a Japanese bank as a joint venture partner, this investment platform acquired more than EUR 2 billion of distressed real estate loans (EUR 1 billion for its own book).
Newly established Albulus continues to build on this success story, investing EUR 300 million in equity capital in thirteen transactions under three separate investment mandates in nonperforming and subperforming commercial property loans.
The first closing of the Luxembourg-based Albulus CREDIT fund, which enables institutional investors to invest in subperforming commercial real estate debt in Germany, was completed in October 2017.
Albulus CREDIT has an investment focus on maturing or matured loans secured by German retail, office, hotel and logistics properties.