German bad bank FMS sells $1.2 bln US property loan portfolio

FRANKFURT, June 5 Thu Jun 5, 2014 4:09am EDT

FRANKFURT, June 5 (Reuters) - FMS Wertmanagement, the bad bank winding down assets from nationalised German lender Hypo Real Estate, has sold a $1.2 billion U.S. commercial real estate loan portfolio, it said on Thursday.

FMS said in a statement it made the sale to take advantage of strong liquidity and heightened investor interest in the United States, adding that the portfolio consisted mostly of performing loans.

FMS did not name the buyer or give financial details of the transaction but said the sale had cut its remaining U.S. real estate position to $800 million. (Reporting by Jonathan Gould; Editing by Victoria Bryan)

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