Hypo Real Estate Bank AG has sold a portfolio of non-performing-loans with a total volume of around Ã¢âÂ¬490 million. The buyer is a consortium consisting of the financial investor Lone Star and JPMorgan. The parties have agreed not to reveal the purchase price.
'The sale of this portfolio is an important step in the restructuring of Hypo Real Estate Bank AG,' comments Johann Berger, spokesman of the Board of Managing Directors of the bank in Munich. 'The move helps us to reduce our workout portfolio as planned and concentrate internal resources,' continues Berger. 'We´re getting serious about quickly and consistently implementing the announced restructuring of our domestic portfolio.'
The portfolio sale, which is one of the largest transactions of this type in Germany to date, is a so-called true sale. Under the terms of the deal, the bank has sold the loan receivables already terminated complete with all associated collateral to the investor. The sales transaction thus entails a change of lender. The portfolio sold comprises a total of around 1,350 loans concerning 960 properties. Around half of the loans (by volume) were extended to private individuals for residential properties, while the other half relates to commercial loans. HypoVereinsbank acted as arranger for the
Source: Hypo Real Estate Bank