* BayernLB to kick off GBW sale in coming days
* Package of 33,000 flats could reap 2 bln euros - experts
* Patrizia Immobilien says is getting ready to bid
* Group of German municipalities also set to bid
(Adds comments from BayernLB CEO)
By Peter Dinkloh and Christian Kraemer
MUNICH, Oct 10 German public sector lender
BayernLB will start the sale of 33,000 flats in the
next few days, its Chief Executive said, in a deal that could
easily top this year's biggest real estate transaction in
The bank, which has to sell the real estate unit GBW
to meet European Commission demands, is seeking
non-binding bids until year-end, CEO Gerd Haeusler said on
Experts have said the package could fetch about 2 billion
euros ($2.6 billion).
BayernLB ran into trouble in 2008 after risky investments
turned sour in the financial crisis, prompting the state of
Bavaria to inject 10 billion euros in fresh capital.
To ensure the so-called Landesbank - a German state-owned
regional bank - does not have an unfair advantage, Europe's
competition watchdog demanded a revamp, which included the sale
of assets like GBW.
Potential buyers will be able to access data rooms in early
2013, Haeusler said, adding the goal was to close the deal by
German real estate company Patrizia is ready to
participate in the auction, Patrizia's finance chief Arwed
Fischer told Reuters. "We are ready to get going," he said.
Patrizia would make a bid for the flats - located in
economically robust southern German cities such as Munich and
Nuremberg - jointly with about a dozen co-investors, mostly
pension funds and insurers.
"There is enough interest," Fischer said, saying it was
relatively easy to get investments from individual investors of
more than 100 million euros at the moment.
Separately, a group of southern German cities and
municipalities, partnering with financial investors, have said
they will place an offer.
A consortium led by Patrizia already made the biggest real
estate acquisition earlier this year, buying the real estate
assets of Germany's biggest public-sector bank LBBW
for 1.44 billion euros.
(Writing by Maria Sheahan and Arno Schuetze; Editing by Helen