PARIS, June 27 Deutsche Bank's real
estate arm and private equity firm LBO France have agreed to
sell Financiere SELEC, a French residential real estate
portfolio, to an investment group led by a former Deutsche
banker, the companies said on Thursday.
TwentyTwo Real Estate, founded by banker Daniel Rigny in
2012, will buy the portfolio, valued at about 1 billion euros
($1.3 billion). Rigny joined boutique investment bank Perella
Weinberg in 2007 after leaving Deutsche Bank.
Terms of the sale, which was completed with equity financing
from investment firm Massena Partners and hedge fund firm
Farallon Capital Management LLC, were not disclosed.
Farallon has been raising a new real estate fund of about
$350 million to $400 million since March.
LBO France and Deutsche Asset & Wealth Management, formerly
called RREEF Real Estate, had bought the portfolio of
residential properties rented to state utility EDF in
About a quarter of the portfolio has since been sold,
leaving about 7,600 housing units.
Before the sale to TwentyTwo Real estate, the portfolio was
refinanced via a 620 million euro mortgage loan, the investors
said in a statement.