German bank WestLB has confirmed it will ask the German government to file a European Commission request for an extension of the year-end sales deadline for its real-estate finance arm WestImmo.
State-controlled WestLB added that it had turned down bids for WestImmo from German real-estate finance bank Aareal Bank AG and private equity fund Apollo Management because they were not acceptable.
“With these bids we can’t make any other decision,” WestLB chief executive Dietrich Voigtlaender said.
WestLB has requested asked that the German government file a request for extension by 31 October, the final date a postponement request can be filed.
A German Finance Ministry spokesman confirmed it would consider the request and said the government “supports the efforts of WestLB to contain the resulting burdens as far as possible”.
WestLB was ordered to sell its WestImmo arm as a condition for winning EU approval of state aid.
paul.norman@estatesgazette.com
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