FRANKFURT, June 11 Germany's Commerzbank
sold 5.1 billion euros ($6.94 billion) in commercial
real estate and non-performing loan portfolios in Spain, Japan
and Portugal, the bank said on Wednesday, in a move to shed
risky assets from its balance sheet.
U.S. investment bank JPMorgan and private equity
house Lone Star formed a consortium to purchase Spanish
commercial real estate (CRE) loans and non-performing loans in
Portugal, Commerzbank said in a statement.
A 700 million euro Japanese CRE portfolio was sold to
Asia-focused alternative investment manager PAG, it added.
The announcement of the deal, one of the biggest of its kind
since Spain's 2008 real estate crash, confirms a Reuters report
published in May.
The deal will lighten Commerzbank's balance sheet by 3.2
billion euros in risk weighted assets and cost the bank 100
million euros in charges in the second quarter, the bank said.
($1 = 0.7345 Euros)
(Reporting by Thomas Atkins; Editing by Jonathan Gould)