A consortium comprising Wells Fargo and Lone Star Funds is acquiring Eurohypo's 鈧�5 bn UK loan book in one of the largest transactions in Europe of this kind in recent years.
A consortium comprising Wells Fargo and Lone Star Funds is acquiring Eurohypo's 鈧�5 bn UK loan book in one of the largest transactions in Europe of this kind in recent years.
Commerzbank, the parent company of Hypothekenbank Frankfurt (formerly Eurohypo) is selling the operational commercial real estate financing activities in the UK. The deal comprises commercial real estate loans totalling 鈧�5 bn, including the relevant interest-rate and currency hedging derivatives.
The loan book is changing hands at a blended discount of 3.5% against a 'fair valuation of portfolio', Commerzbank said.
As a result of the deal, the Lone Star funds will acquire the non-performing assets and Wells Fargo entities the performing loans. Wells Fargo, one of the largest banking groups in the US, is taking on Hypothekenbank Frankfurt's UK personnel.
Law firm Ashurst advised Commerzbank.
