Aareal Bank has expanded its group of companies with the addition of a mortgage bank Ã¢â¬" Aareal Hyp AG Ã¢â¬" which commenced operations at the beginning of the year. With this move, Aareal Bank Group, which conducts the property activities of the former DePfa Group, continues its successful track record in issuing Pfandbriefe under a new name.
The launch of Aareal Hyp enables the Group to cost-efficiently refinance a portion of its property loan portfolio whilst enhancing its issuance spectrum at the same time.
Aareal Bank and Aareal Hyp will work closely together in both the German and international property lending businesses. In this respect, the mortgage bank will take only first ranking loans onto its balance sheet; in addition, it will conduct traditional public finance business to a limited extent only.
In the words of Karl-Heinz Glauner, Chairman of the Management Board of Aareal Bank and Chairman of the Supervisory Board of Aareal Hyp, Ã¢â¬ÅAareal Hyp will enable us to use Pfandbriefe to refinance a part of our portfolio. In view of the marketÃ¢â¬â¢s concentration on just a small number of major Pfandbrief issuers, we will thus also offer an alternative to our investors.Ã¢â¬Â Glauner commented further: Ã¢â¬ÅAareal Hyp reinforces the successful realignment of the Aareal Bank Group. Shortly after commencing operations, it will already manage an initial cover assets pool of property loans well in excess of 1 billion euroÃ¢â¬Â.
Sven-Peter Eisenblatter (54) and Hans Jochen Erlebach (58) have been appointed to the Management Board of the new Aareal Hyp, bringing with them a wealth of expertise in the property lending business which they have gained from many years of experience as key executives with the Aareal Bank Group.
(source: Aareal Bank)