FRANKFURT Feb 4 German real estate group Gagfah
, controlled by U.S. investor Fortress, is to
refinance a 1 billion euro ($1.4 billion) loan of its Woba unit,
leading it to scrap the sale of the division.
"Upon the completion of this transaction, Gagfah will have
made a significant step towards resolving its 2013 debt
maturities," the company said on Monday.
Bank of America will lend Gagfah the money, a person
close to the German real estate company said.
Reuters reported last month that Gagfah had cancelled the
sale of the Woba portfolio, consisting of 38,000 flats in the
eastern German city of Dresden.
Bidders included peer Deutsche Wohnen, but none
offered more than 1.6 billion euros - a price Gagfah was
unwilling to accept as it was 200 million less than it valued
the flats at, the sources told Reuters in January.