Cross Collateralized Portfolio of Re-performing Debtors


23 September 2025

Transaction Snapshot 

KBS Realty Advisors LLC supported Polymath & Boffin (P&B) in setting up the first REIT-like structure in Italy, leveraging KBS’s expertise in this area. Multiple parties, each facing issues with different creditors and in need of new liquidity, contributed their real estate into a pooled vehicle. This pool enabled participants to access additional liquidity to address deferred maintenance, property upgrades, credit encumbrances, and other real-estate capital requirements. Most properties were offices or mixed residential-and-office assets in the greater Milan area. 

KBS was founded in 1992 and, as of June 30, 2022, its team had handled $44.7bn in transactions. KBS acquires and operates prime commercial real estate.

 

Our Mandate 

P&B’s role was to:

  • Establish a REIT-like structure suitable for Italy with KBS’s assistance.

  • Aggregate Assets from multiple parties into a cross-collateralized pool.

  • Enable access to new liquidity so participants could address property-level needs and creditor-related issues.

 

 

Solution Architecture 

  • Cross-collateralised pool. Participating owners submitted qualifying real estate to a single pool, creating a common platform. 

  • REIT-like vehicle. The structure allowed assets to be held under a consolidated framework compatible with the Italian context. 

  • Use of proceeds. Liquidity raised through the pool was applied to deferred maintenance, updates to properties, and resolution of credit encumbrances, among other needs. 

 

Outcome & Benefits 

  • Liquidity access achieved. Contributors obtained extra liquidity to manage capital requirements tied to their properties and creditor situations. 

  • Asset focus. The pool concentrated primarily on office and mixed-use (residential/office) properties around greater Milan. 

  • Institutional partnership. The initiative benefitted from KBS’s REIT expertise and institutional track record ($44.7bn transactions as of June 30, 2022). 

 

Why It Matters for Investors 

  • Structured solution. A REIT-like, cross-collateralized framework can organize fragmented positions into a single vehicle.

  • Problem-solving orientation. The pool was designed to provide liquidity for maintenance, upgrades, and encumbrance resolution.

  • Experienced sponsor support. Collaboration with KBS Realty Advisors brought established REIT know-how and a longstanding transactions record to the initiative.

 

 

This programme reflects Polymath & Boffin’s focus on practical structures that help stakeholders address creditor issues and property-level capital needs, within a disciplined, investor-grade framework. 


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