Commerzbank in talks to sell 5.7 bln euros of UK property loans

FRANKFURT Tue May 14, 2013 9:09am EDT

FRANKFURT May 14 (Reuters) - Commerzbank is in intensive talks to divest the bulk of its 5.7 billion euros ($7.4 billion) in British property loans, Germany's second biggest lender said in the prospectus of its capital increase published on Tuesday.

Commerzbank wants to sell the portfolio to private equity investor Lone Star and U.S. bank Wells Fargo, a source familiar with the transaction had said last month.

Commerzbank is hiving off the UK property loans business of its mortgage unit Hypothekenbank Frankfurt International, formerly known as Eurohypo as a way to cut down the size of its balance sheet.

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