August 20, 2014 / 10:26 AM / in 3 years

Sale of German mortgage bank Westimmo enters next phase -EAA

DUESSELDORF, Germany, Aug 20 (Reuters) - German ‘bad bank’ Erste Abwicklungsanstalt (EAA), which has been tasked with winding down assets of failed German lender WestLB, said on Wednesday it expected interested parties to make concrete offers for mortgage bank Westimmo.

EAA added that the call for bids follows a “satisfactory” outcome of potential bidders’ review of Westimmo’s books.

Sources familiar with the deal told Reuters last month that property lenders Aareal and Berlin Hyp were among those eyeing Westimmo in a deal potentially worth more than 300 million euros ($400 million).

Blackstone, KKR and Apollo have also expressed their interest in the mortgage bank, the sources said at the time.

Investors have been attracted to Germany’s real estate sector in recent months by the reliable income stream that property projects typically offer and by higher yields than those on German sovereign bonds. Investors are also betting on rising property prices in Europe’s largest economy.

1 US dollar = 0.7529 euro Reporting by Matthias Inverardi, writing by Jonathan Gould; Editing by Ludwig Burger

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