Dresdner Bank has received bids of €2bn (£1.4bn) and higher for a portfolio of 300 bank branches across Germany. Fortress, Citigroup and Babcock & Brown are among the front runners for the portfolio, which has a total floor space of 820,000m2 (8.8m sq ft).
The buildings are mostly let to Dresdner Bank but also include other tenants.
The deal will be the biggest office portfolio sale in Germany in recent history. Nearly two years ago, Blackstone Group paid Deutsche Bank €1bn (£677.5m) for a portfolio of 51 bank branches, but only two-thirds of the 490,000m2 (4.3m sq ft) portfolio was in Germany.
Last month, CommerzLeasing und Immobilien bought the Hessen portfolio for €1.07bn (£724m). The state of Hessen leased back the properties for up to 30 years.
Unlike the Hessen portfolio, the Dresdner Bank transaction is not a straightforward cashflow deal. The portfolio contains vacancies as well as short, medium and long leases and would require active asset management, said sources.
References: EGi News 02/12/05
