GERMANY - A number of German banks shaken by the financial crisis are now restructuring their real estate businesses.
The real estate division of the regional bank µþ²¹»å±ð²Ô-°Âü°ù³Ù³Ù±ð³¾²ú±ð°ù²µ, LBBW Immobilien, has now been renamed ³§Ã¼»å»å±ð³Ü³Ù²õ³¦³ó±ð Wohnen, the bank noted in a statement.
Earlier this year, a consortium around real estate company Patrizia had bought , leaving the bank with the project development business and a few residential assets.
The bank announced it would widen the range of ³§Ã¼»å»å±ð³Ü³Ù²õ³¦³ó±ð Wohnen's residential portfolio beyond the borders of the province of µþ²¹»å±ð²Ô-°Âü°ù³Ù³Ù±ð³¾²ú±ð°ù²µ into neighbouring Southern German provinces.
The management will remain the same under Christian Jaeger and ´³Ã¼°ù²µ±ð²Ô Rieger.
Meanwhile, Commerzbank, in which the state owns one-quarter since the financial crisis, said it would not realise its plans to create a new 'Real Estate and Ship Finance' department.
Instead, the bank will focus on its core business and integrate Commerz Real into the retail customer business.
Financing of retail properties and ships will be gradually decreased and eventually dissolved, Commerzbank said.
Chairman of the board at the bank, Martin Blessing, named the ongoing financial crisis, as well as new regulations such as Basel III, as reasons for the changes, which require the bank to increase its liquidity and capital ratio.
In the meantime, the new designated head of Deutsche Hypo, Thomas µþü°ù°ì±ô±ð, who will succeed ´³Ã¼°ù²µ±ð²Ô Allerkamp from July, told the Financial Times Deutschland that the real estate company would withdraw from its US business.
Deutsche Hypo is a subsidiary of the regional German bank Nord LB.
µþü°ù°ì±ô±ð also announced a withdrawal from the Spanish market, as well as various spending cuts within the company.
