German landesbank WestLB is seeking an extension to the year-end deadline for the sale of its real estate finance arm WestImmo.
State-controlled WestLB has confirmed it will ask the German government to file a European Commission request to push back the deadline.
The bank said it had turned down bids for its specialist commercial property lending division from German real estate finance bank Aareal Bank AG and private equity fund Apollo Management because they were not acceptable.
It is understood the bids were around the €500m (£426.9m) mark. This is below WestImmo’s book value of €600m.
“With these bids, we can’t make any other decision,” WestLB chief executive Dietrich Voigtlaender said.
WestLB has 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 put WestImmo up for sale in return for receiving EU aid during the financial crisis.
WestImmo has been one of the more active lenders in the UK over the past year.
It has funded several high-profile transactions, including the refinancing of Lakeside Shopping Centre, owned by Capital Shopping Centres, and Meyer Bergman’s purchase of the Bentall Centre in Surrey.
