FINANCE: Citibank is “exploring all options” for the disposal of Deutsche Pfandbriefbank by Hypo Real Estate Holdings.
This includes an initial public offering of the bank’s European commercial real estate and public investment finance division as well as a traditional sale, which has long been expected as the exit route.
One source said: “Two years ago, an initial public offering was not on the agenda,” but given the recent strong appetite by investors in the public market, “it is now an option on the table.”
In August Hypo Real Estate Holdings appointed the investment bank to advise on the disposal of pbb ahead of the European Commission’s 2015 deadline.
Pbb’s European real estate finance division completed €3.7bn (£2.9bn) of new business in the first half of the year – up from €2.8bn in 2013 – according to its interim results.
Last year pbb lent a total of €7bn to real estate in what was a post-crisis record high.
