Deutsche Bank, LBO France sell 1 bln euro property portfolio

PARIS, June 27 Thu Jun 27, 2013 6:44am EDT

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PARIS, June 27 (Reuters) - Deutsche Bank's real estate arm and private equity firm LBO France have agreed to sell Financiere SELEC, a French residential real estate portfolio, to an investment group led by a former Deutsche banker, the companies said on Thursday.

TwentyTwo Real Estate, founded by banker Daniel Rigny in 2012, will buy the portfolio, valued at about 1 billion euros ($1.3 billion). Rigny joined boutique investment bank Perella Weinberg in 2007 after leaving Deutsche Bank.

Terms of the sale, which was completed with equity financing from investment firm Massena Partners and hedge fund firm Farallon Capital Management LLC, were not disclosed.

Farallon has been raising a new real estate fund of about $350 million to $400 million since March.

LBO France and Deutsche Asset & Wealth Management, formerly called RREEF Real Estate, had bought the portfolio of residential properties rented to state utility EDF in 2006.

About a quarter of the portfolio has since been sold, leaving about 7,600 housing units.

Before the sale to TwentyTwo Real estate, the portfolio was refinanced via a 620 million euro mortgage loan, the investors said in a statement.

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