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Commerzbank sells $7 bln property and NPL portfolios
June 11, 2014 / 12:30 PM / 3 years ago

Commerzbank sells $7 bln property and NPL portfolios

FRANKFURT, June 11 (Reuters) - 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)

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