Dresdner Bank has sold a €1.2bn loan portfolio to US investor Lone Star. The portfolio, managed by Dresdner’s Institutional Restructuring Unit (IRU), contains 1,300 German loans to more than 300 mainly corporate borrowers.
Non-performing loans make up two thirds of the portfolio and the remainder is sub-performing. Commercial property loans account for 40% of the total.
Dresdner’s investment banking arm, Dresdner Kleinwort Wasserstein, acted as financial adviser to the IRU. After this deal, the IRU’s German portfolio has a loan exposure of less than €4bn, down from the original €9.2bn. Dresdner said cuts in the German portfolio were achieved mainly by asset workouts and single-asset sales.
Meanwhile, Hypo Real Estate Bank sold a €390m loan portfolio to a syndicate of Morgan Stanley Real Estate Funds and Citigroup. The new owners are understood to have bought the portfolio which consists of 800 loans, including healthy, sub-performing and non-performing loans to 380 customers at a 30% discount.
The deal was arranged by HVB Real Estate Structured Products/M&A.
