First Title Insures Allianz in Record Romanian Property Deal
September 13, 2007, SANTA ANA, Calif.
First Title Insurance plc (First Title), a subsidiary of First Title plc and the largest provider of title insurance in the United Kingdom and Europe, today announced that it is insuring the title on Romania’s largest office-space transaction, which includes three buildings in Bucharest previously owned by the European Convergence Property Fund (ECPC) and recently purchased by Deutsche Gesselschaft fur Immobilierenfonds (DEGI), the real estate investment arm of the German company Allianz.
The deal, which was for an undisclosed amount, is DEGI’s first transaction in Romania. Due to the scope and size of the transaction, DEGI promptly purchased title insurance coverage from First Title in order to mitigate risks associated with potential title defects.
Andrew Jackson, managing director of First Title CEE, a sister company of First Title, comments:
“It is important to mitigate risk when it comes to property deals, especially if they involve significant levels of capital. DEGI purchased title insurance through First Title to protect themselves from unexpected third-party challenges against defects in title, which can range from fraud and forgery to known-risks; in turn, speeding up the property transaction.
“With eastern Europe increasingly becoming a hub for institutional investors, title insurance is experiencing increased demand. Such market dynamism has led to companies such as First Title expanding at an unprecedented rate, across the region,” Jackson added.
Andrei Diaconescu, managing director of investment firm Capital Partners – advisers to ECPC’s management company, Charlemagne Capital, during the acquisition and sale of the three buildings – comments: “The DEGI/ ECPC deal marks the entry of the big league of institutional investors into Romania. Such high-profile transactions serve to place Romania even more firmly on the global financial map as a country that is becoming increasingly associated with low trading costs, but high prices and, therefore, lower risks.
“As a result of the increase in money-spinning property transactions, we feel that it is prudent for companies to protect themselves from as many potential risks as possible. Mitigating risk should be part and parcel of all property transactions, and protecting assets from issues as potentially debilitating as title defects should be a necessity,” notes Diaconescu.
About First Title plc
First Title plc has eight offices throughout Europe — five offices in the United Kingdom and elsewhere in Germany, Poland and Hungary — with more than 600 employees. It provides a wide range of innovative products that enable lawyers, mortgage lenders and estate agents to deliver more efficient and advanced service to their property clients. More information about the company can be found at www.firsttitle.eu.
First Title is a wholly owned subsidiary of The First American Corporation (NYSE: FAF), a FORTUNE 500® company that traces its history to 1889. First American is America’s largest provider of business information, supplying businesses and consumers with valuable information products to support the major economic events of people’s lives. Additional information about The First American Family of Companies can be found at www.firstam.com.