GE Capital has confirmed it has signed an agreement with Deutsche Postbank AG to purchase a portfolio of commercial property loans valued at £1.4bn (€1.7bn).
The portfolio, dubbed Project Tower, comprises 55 loans with primarily UK borrowers, many with near-term loan expirations, providing GE with access to a new customer base and the potential for refinancing or for new loan activity.
GE’s equity exposure is down by 60% from its peak before the recession, following a strategy to reduce equity holdings through property improvements and then selling into rising markets.
Ellen Brunsberg, managing director of GE Capital Real Estate UK, said: “This transaction is a significant investment and an expansion opportunity for GE’s commercial real estate lending activities in Europe. We are fortunate to acquire a portfolio from Deutsche Postbank given its excellent reputation for real estate lending, and our similar approach to providing outstanding client service.”
The transaction is expected to complete by the end of the year.
