The preparation of a White Paper and its successful implementation in SAREB assured business continuity after the management takeover of its entire portfolio. As a result, SAREB now follows our methodology as a best practice to carry out portfolio transfers to investors, e.g. the recent generation of a REIT (SOCIMI in Spanish) and in its loan showcase
The Challenge To transfer the management of over 200,000 financial and real-estate assets and assure business continuity
The main objective of the Sareb (Sociedad de gestión de activos procedentes de la reestructuración bancaria, S.A.) is the management and divestment of the loans and real-estate asset portfolio acquired after the segregation of troubled assets of banks bailed out by the State.
To undertake the management of these assets through a professionalised service, Sareb decided to call for a tender and appointed Minsait to provide support services. This process culminated with the transfer of the management of the entire Sareb portfolio to 4 new Servicers.
Sareb was thus faced with prospect of having to transfer the management of a massive volume of financial and real estate assets (more than 200,000 assets worth €50.78 bn), having to monitor the correct migration of the data, the service and the physical and digital documentation from 9 banks to 4 new Servicers—each of them with different systems and operational, accounting and commercial management criteria.
Assuring the correct migration in time and form and meeting the client's specifications required that Minsait carry out:
- The definition of a methodology for the migration adjusted to the uniqueness of the process and the requirements to be met in the process. That task required deep knowledge in Real Estate Management and experience in asset management transfer.
- Once the migrations began, Minsait would have to comply with the migration requirements conveyed by the client to ensure business continuity before, during and after the transfer of the portfolio's management.
The solution Definition of the White Paper of the Migration and establishment of a Technical Migration Office (TMO)
Before approaching the management transfer, Minsait and the client prepared the White Paper on Migration, which provided guidelines for the definition of the migration strategy as well as the details of the requirements, the project's "red lines" and the methodology for its correct execution.
Once the migration methodology was validated with the client, Minsait took over the leadership, monitoring, control and reporting of the projects through the OTM, and became the client's executive unit for controlling migrations:
- Defining the governance and reporting model and the tasks to be performed by the Sareb, Servicer and Transferor teams throughout the process.
- Carrying out an exhaustive control and supervision of the Servicers' migration projects, maintaining alignment to Sareb's methodological framework.
- Ensuring that the migration was executed on time and respecting the quality standards, including data quality testing.
- Identifying risks, critical issues and deviations in a preventive manner, which called for the development of corrective action plans.
- Coordinating the multiple teams involved, guaranteeing agile and direct communications.
