* 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 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)