After selling a portfolio of nine US commercial real estate loans at the beginning of the year, German real estate bank Eurohypo is putting a similar portfolio of US real estate assets on the sales block.
According to the Wall Street Journal, Eurohypo is looking to sell a portfolio of 12 US commercial real estate loans valued at $750 million. The performing loans are tied to properties in major US cities. The troubled commercial real estate finance unit of Germany’s Commerzbank is seeking bidders for the portfolio in the next month.
“In line with Commerzbank’s strategy to reduce Eurohypo assets globally, the bank is seeking to reduce assets in the US,” a Eurohypo spokesman told the Wall Street Journal. When asked for further comment, he deferred to the statement.
Indeed, placing this portfolio up for sale continues Eurohypo’s ongoing strategy for its US assets. In January, the bank sold a portfolio of nine commercial real estate loans with a total face value of $300 million at a discount to The Blackstone Group. The loans in that portfolio comprised a mix of performing and nonperforming mortgages backed by $700 million of underlying hotel, office, retail and mixed-use properties in the US.
As a condition of receiving rescue funds during the credit crunch, the European Union ordered Commerzbank to sell its money-losing subsidiary by 2014. Eurohypo currently holds $6 billion in US commercial real estate loans.
Jones Lang LaSalle, which is marketing the portfolio, declined to comment.