SOURCE: Omega Commercial Finance Corporation

Omega Commercial Finance Corporation

June 20, 2013 08:18 ET

Omega Commercial Finance Plans to Launch European Commercial Real Estate Finance Fund Focused on EU Banks' Distressed Mortgage Loan Market

MIAMI, FL--(Marketwired - Jun 20, 2013) -  Omega Commercial Finance Corporation (OTCQB: OCFN) will be launching a commercial real estate pooled fund focused on distressed European commercial real estate mortgages in select markets such as Ireland, Spain, Italy, Greece, and London. The proposed fund will be called Omega EU Fund II, LP and is estimated to launch sometime in the second half of 2013. It seems European banks have picked up the pace on loan modifications and the disposition of distressed commercial property loans as a means to primarily clean up their balance sheets similar to what U.S. banks started to do after the 2008 credit debacle.

Consequently this financial trend within the industry has created a great opportunity for OCFN internationally to position and diversify its lending operations with prudent loan refinancing opportunities. The total volume of real-estate assets both sold or refinanced to date represents 20% to 25% of banks overall loan-reduction target, which Morgan Stanley's most recent estimate places at EUR 700 billion. The proposed Omega EU Fund will assist in bridging the gap between the discounted mortgage balance by the banks and the current stabilized fair market value of properties with two, three, and five-year term loans.

VP of Lending Holly Leide has assembled up to six refinancing requests consisting of EU banks' modified mortgage loans totaling $15-million. These loans all originate from the Bank of Ireland and specifically meet the Fund's two main underwriting characteristics, which are those having low loan to values with high debt service coverage. Jon S. Cumming IV states, "I am optimistic about the EU banking economic outlook, specifically if the loan balance is modified to adjust to the underlying property's net operating income. I have seen it firsthand how U.S. banks disposed of quality assets over the past 4 years that have made great yielding assets to other new lenders."

About Us:

Omega Commercial Finance Corporation is a publicly traded financial services holding company with up to $150-million in assets under management through its interest in VFG Securities and VFG Advisors with its principal companies operating in the commercial real estate, finance, and capital markets sector. As a holding company, OCFN together along with its subsidiaries' management teams have a combined 50-years of experience and knowledge across these business lines.

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This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) our expectations regarding revenues and earnings; (ii) our growth strategy and operating strategy; and (iii) our ability to attract new registered representatives. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential," "project" and similar expressions are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those projected in the forward-looking statements.

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