FRANKFURT Feb 1 Germany's Commerzbank
is in talks with private equity companies Apollo and Cerberus
to sell a 4 billion euro ($5.4 billion) portfolio of
Spanish property loans, German weekly magazine WirtschaftsWoche
Commerzbank, Germany's second-largest lender, declined to
comment. Apollo and Cerberus could not immediately be reached.
The Frankfurt-based bank is seeking to sell off the
portfolios of its former mortgage unit Hypothekenbank Frankfurt
International, formerly known as Eurohypo to cut its balance
sheet and fulfil stricter bank safety rules known as Basel III.
In July, Commerzbank sold British property loans worth 5
billion euros to U.S. rival Wells Fargo and private
equity firm Lone Star Funds.
Commerzbank's move follows similar steps by other troubled
banks. Allied Irish Banks Plc and Anglo Irish Bank Corp
Ltd have also sold portfolios, including billions of dollars
worth of loans on U.S. properties.