Wells Fargo and Lone Star are now in exclusive talks with Commerzbank to buy the £4bn UK commercial property loan book of Eurohypo.
Last week the Wells Fargo/Lone Star combination was shortlisted against another combined bid from Starwood and Pimco as well as separate bids from Apollo and Blackstone.
Now Commerzbank has decided that the Wells Fargo/Lone Star bid is the preferred one. Wells Fargo will take the performing part of the loan book – about 75% or £3bn – while Lone Star will work out the £1bn of distressed loans.
None of the parties involved would comment officially, but it is understood that the process of finalising the deal could take a number of weeks. Part of this will involve “forensic analysis” of the loans involved, said one of those close to the deal.
david.harris@estatesgazette.com
