UPDATE 1-German banking phoenix syndicates $105 mln loan

* Deal marks syndicate return for Deutsche Pfandbriefbank AG

* Says loan syndication frees up resources for new business

(Adds background)

LONDON, Nov 11 (Reuters) - Deutsche Pfandbriefbank AG NUEGg.DE, the lender formed following the merger of two of Germany's biggest banking crisis casualties, has returned to the syndicated loan market to boost its property lending ambitions.

The Munich-based bank, the product of Hypo Real Estate AG and Depfa Bank, has syndicated 70 million euros ($105 million) of a 110 million euro credit facility offered to industrial property landlord ProLogis European Properties (PEPR.AS) with two unnamed German banks.

Deutsche Pfandbriefbank has described the transaction as one of the largest loan syndications of its kind since the outbreak of the financial markets turmoil in autumn 2008.

The deal has improved Deutsche Pfandbriefbank's risk/return ratio and also freed up resources for new business, the lender said in a statement.

The facility is secured on a portfolio of 17 fully let German logistics properties built in 2007 and 2008, with an aggregate floor space of 423,000 square metres.

News of the lender's return to the syndicated loan market comes less than a month after it issued a 1 billion euro, 10-year covered bond to raise fresh capital. [ID:nLF162060]

In late October, the bank also booked a small gain on the sale of 759 million euros of distressed collateralised debt obligations offloaded to underpin its balance sheet and trim its exposure to risky structured assets. [ID:nLR436779] (Reporting by Sinead Cruise; editing by Elaine Hardcastle/Will Waterman) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters) ($1=.6674 Euro)