Bids Made for CW Financial Services
Financial Times reports: Two buy-out firms have made bids for CW Financial Services, one of the biggest servicers of troubled US commercial mortgage loans, people familiar with the matter said.
Apollo Global Management and Centerbridge Capital Partners made separate offers for CW Financial, parent of the second biggest manager of delinquent commercial mortgages in the US. The bids are valued at about $200m, the people close to the situation said.
"There is a lot of sophisticated capital looking to own this business, and the timing is important," according to one person involved in the bidding.
Mortgage servicers profit when defaults rise on commercial property loans, so the bids are being seen as bets of more problems in the sector.
CW Financial is considered a "full service" special servicer and would be able to provide pricing information to potential investors in the sector.
CW Capital, which is a subsidiary of CW Financial, services a portfolio of $11.6bn in loans in 48 US states.
"The volume of loans under management has grown tremendously because of the deterioration of the commercial real estate market, so this has been a major growth area in terms of activity," said Sam Chandan, global chief economist of commercial real estate research firm Real Capital Analytics.
View the full article on Financial Times: Bids Made for CW Financial Services
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