Capital Servicing


Industry Leader in Servicing Commercial and Residential Mortgage Loans Including Securitizations

Capital Servicing Co., Ltd. (“Capital Servicing”) is recognized as the industry leader in servicing commercial and residential mortgage loans for international institutional investors. Highly rated by Standard & Poor's in Japan as a primary servicer, Capital Servicing has extensive experience servicing securitized loans, structured mortgage loans and conduit loans which include CMBS and RMBS transactions in Japan. Our primary servicing teams work closely with our asset management teams for seamless transfer of loans that default and fall into special servicing. System allows us to efficiently manage performing and non-performing loans on a single integrated system and centrally warehouses all asset data, providing accurate, timely and consistent reporting to international standards. A primary servicer is the front line in the administration and management of performing loans. Tasks include the collection of monthly principal, interest and escrow payments from borrowers, delinquency management, prepayment calculations as well as remitting and reporting to investors.


Highest Rated Special Servicing Platform in Asia

Capital Servicing’s extensive servicing track record, workout expertise, international reporting capabilities, strong internal controls and state-of-the-art systems have earned us the highest special servicer ratings from Standard & Poor's. Our experience covers non-performing loan (“NPL”) portfolios backed by commercial real estate assets (office, hotels, shopping centers, industrial storage, mixed use, etc.) and residential assets located throughout Asia for our diverse clientele that includes leading international and regional banks, investment firms and non-banking financial institutions.

Commercial NPL Portfolios: We utilize strong local market knowledge and proactive strategies to maximize recoveries and mitigate risks. Our asset managers not only pursue strategies such as voluntary sale and discounted payoffs, but also explore, when appropriate, loan restructuring and business revitalization. This combination of creativity and experience frequently results in a win-win scenario; investor returns are maximized while creating the best outcome for the borrower. S&P’s evaluation of Capital Servicing’s Japan operation stated, we have “a highly efficient special servicing operation; better collection performance; and systems designed to provide global investors with highly reliable services.

Residential NPL Portfolios: Unlike commercial NPLs, volumes are much higher and individual loan unpaid principal balances are much lower. Capital Servicing has created efficient business processes that enable time-oriented resolutions that maximize returns.


Capable of Providing Back-Up Servicing for any Servicing Operation Across Asia

Capital Servicing is able to perform efficient, cost-effective Back-Up Servicing (BUS) for any servicing operation in Asia. Loan servicing data is securely transferred from the servicer and stored safely on our encrypted servers, so that in the event that the servicer defaults on their ability to service any assets, Capital Servicing is ready to step in and seamlessly take over servicing duties. Capital Servicing offers a wide range of Back-Up Servicing tailored to the needs of the client. Below is an outline of the levels of Back-Up Servicing which Capital Servicing offers, ranging from “Cold” to “Hot”. Cold BUS requires the lowest level of involvement from the Back-Up Servicer, and therefore has a longer lead-time prior to taking over servicing duties, and as the level of involvement increases, so the minimum advance notice decreases.


Due Diligence

Capital Servicing has been entrusted with due diligence work to evaluate monetary claims mainly for financial institutions, funds, and other general business corporations.

In the evaluation of monetary claims, we carefully examine the claims, debtors, collateral, guarantors, background of the project, etc. based on the submitted documents and other materials, and then evaluate and calculate the fair value of the monetary claims.

(In addition to receiving this as part of our special servicing operations, we also undertake independent due diligence operations. Through these operations, we help ensure the transparency of our balance sheets.)

Asset Management

Asset Management

  • We work closely with investors during the underwriting process and prepare detailed business plans
  • Our deep industry knowledge and broad base of contacts assists in the selection, hiring and oversight of property specialists
  • Approval of operating budget, leasing and CAPEX plans
  • Rebranding, repositioning, redevelopment and value add strategies
  • Manage all facets of asset insurance setup and maintenance
  • Provide valuation support when investors are preparing real estate business strategies and during the marketing phase of a property
  • Coordinate third party brokerage hiring and oversight
  • Comprehensive asset summary reports in preferred language

Investment & Acquisition

  • Brokerage services for acquisition and disposition
  • Sourcing and selecting investment opportunities
  • Defining individual property business plans
  • Conducting the due diligence and underwriting process including financial modeling and valuation
  • Sourcing and negotiating debt financing and purchase agreement conditions
  • Monitoring tax structuring in coordination with lawyers and tax specialists
  • Managing deal execution and smooth transitioning to asset management team

Portfolio Management

  • Administrating property holding companies and offshore entities
  • Managing cash movements and distributions
  • Coordinating tax fillings, regulatory tasks and payments
  • Coordinating property holding companies' accounting and audit functions
  • International standard investor reporting in preferred language
  • Appointing and monitoring Fund level servicers

Loan Intermediary Administration

As an intermediary company (Governor of Tokyo No. 31732) specified by the Money Lending Business Act, we act as an intermediary for apartment loan contracts provided by financial institutions to apartment buyers.

In addition to explaining the terms and conditions of the loan to those who need funds, we will comply with the Money Lending Business Act regarding various operations necessary for financial institutions to provide loans, such as confirmation of documents such as loan applications, support for appraisals, and preparation of examination materials. We provide clerical agency services that comply with laws and regulations.

Through these operations, we strive to facilitate the application procedures for financial institutions and to conclude smooth loan agreements.