NordLB lending unit Deutsche Hypo has entered into a €500 million joint venture with pension fund Bayerische Versorgungskammer to offer commercial real estate loans, according to a release.
The venture will target German portfolios of real estate properties, according to a translation of the release made available through Deutsche Hypo’s website.
Deutsche Hypo chief executive officer Thomas Bürkle said the venture would strengthen the lending unit’s business model and allow it to loan at higher volumes.
In a statement, Bayerische Versorgungskammer indicated that the agreement would allow the pension fund to diversify its portfolio through a “safe and stable” asset class.
Deutsche Hypo specialises in the financing of commercial real estate. The NordLB lending unit operates in Germany, the UK, France, the Benelux region and Poland.
NordLB had approximately €208 billion in assets at press time. The bank generated approximately €96 million in earnings and €87 million consolidated total profit in the first half, according to an earnings release.