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3 years ago
UPDATE 1-Bad bank sells $1.2 bln property loans to Deutsche Bank-sources
June 5, 2014 / 11:30 AM / 3 years ago

UPDATE 1-Bad bank sells $1.2 bln property loans to Deutsche Bank-sources

* Loan package sold consists mainly of performing loans -FMS

* Bidding process was highly competitive -FMS

* Deutshe Bank bought loan package -sources (Adds Deutsche Bank as buyer, Deutsche Bank no comment)

FRANKFURT, June 5 (Reuters) - The German government's "bad bank" which is winding down assets of nationalised lender Hypo Real Estate has sold a $1.2 billion U.S. commercial real estate loan portfolio to Deutsche Bank, two sources familiar with the transaction said.

The bad bank, FMS Wertmanagement, had earlier on Thursday announced the sale but did not name the buyer. It said the portfolio consisted mostly of performing loans and that the bidding process had been highly competitive.

While FMS said the loan package's nominal value was $1.2 billion, it did not disclose at what price it was sold for. The sources also would not give financial details.

Deutsche Bank declined comment.

The sale took advantage of strong liquidity and heightened investor interest in the United States, FMS said.

"We want to continue to take advantage of opportunities like this ... to accomplish our mission of winding up this portfolio while maximising value," FMS Chief Executive Christian Bluhm said in the statement.

The sale cuts FMS's U.S. real estate position to $800 million, it said. (Reporting by Kathrin Jones and Jonathan Gould; Editing by Victoria Bryan and David Holmes)

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