Aareal Bank has securitised and syndicated a significant volume of loans approved to real estate funds. Up to June 2005, the amount of synthetically securitised and syndicated loans granted to leading addresses in the international real estate fund business reached a volume of more than 300 million. Aareal Bank is a pioneer in Buy & Sell-transactions of real estate fund loans.
The transactions include a total of eleven financing operations for properties acquired by open-ended real estate funds and real estate special funds (German "Spezialfonds"). The loan portfolio relates to commercial real estate with a wide geographic spread across Sweden, Great Britain, Belgium, France and Italy.
Dr. Ralph Hill, member of the Management Board of Aareal Bank comments, "We have been able to build up a carefully selected, coherent and attractive loan portfolio which is tailored to meet the special needs of the relevant groups of investors, thereby optimising the risk/return profile of our loan portfolio. We are continuing to pursue our buy & sell strategy and intend to link these activities even more closely with our operations in the
The bank took the first step in October 2004 with the Global Commercial 3 securitisation transaction which transferred 124 million of risks accruing from loans to open-ended real estate funds. This was the first securitisation transaction to contain a large proportion of loans committed to open-ended real estate funds. Until June 2005 Aareal Bank transferred further fund loans totalling 176 million to the Landesbank Saar under a package syndication arrangement.
To date, Aareal Bank has placed eight synthetic securitisation transactions with a total volume of around 11 billion, with institutional investors on the capital market and has syndicated some 3 billion to other banks.
Source: Aareal Bank