APS, one of Europe’s largest debt servicing companies, says it has been instrumental in strengthening the Cyprus economy by combating the plague of non-performing loans through acquiring a €400 mln property portfolio.
According to APS Real Estate Director Elpiniki Franzis, the Cyprus subsidiary has so far added to its portfolio more than 1,250 properties worth €400 mln.
APS acquired the properties after buying packages of NPLs from Cypriot banking institutions and has sold real estate worth €120 mln within the first two years of operating in Cyprus.
The majority of real estate managed by APS, Frantzis points out, is considered to be of medium or low value while the number managed by the company is expected to double within the next 9 months.
Frantzis said the majority of property buyers are mainly in the market for residential units, and secondly for commercial property. In particular, apartments are a high preference of Cypriot buyers as is seafront real estate with prices increasing.
Both local buyers and foreign investors have exhibited interest in the properties managed by APS.
Cypriot buyers prefer smaller residential homes or real estate in the city centre, while big investors are more interested in commercial and tourist units, especially in coastal areas.
Referring to the modes of operation of APS, Frantzis said the company follows a wide and comprehensive range of actions to secure and sell properties while ensuring transparency.
The recovery of real estate is achieved either through mutually acceptable methods, such as the consensual Debt to Asset Swap or by exercising their right to foreclose a property.
APS manages the Hellenic Bank real estate and part of the Bank of Cyprus portfolio.
APS Debt Servicing Cyprus is a subsidiary of APS Holdings, one of Europe’s largest debt servicing companies.
APS Holding operates in 16 countries and employs over 1,000 professionals. The nominal value of the managed portfolios exceeds €8 bln.
The company expanded to Cyprus through a joint venture with Hellenic Bank, founding APS Debt Servicing Cyprus in July 2017.
APS Holding owns 51% majority of the company, Hellenic Bank holds the remaining 49%.
APS Debt Servicing Cyprus undertook the management of Hellenic Bank’s NPL portfolio estimated at €2.3 bln and of real estate assets worth €150 mln.
Moreover, it is managing the unsecured retail loans that APS Loan Management Ltd acquired from the Bank of Cyprus, worth €245 mln.
