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Commerzbank sells EUR5.1bn property assets in Spain, Japan, Portugal.


12 June 2014 - Germany's Commerzbank AG (ETR:CBK) said it had sold commercial real-estate financing portfolios (CRE) in Spain and Japan and the non-performing loan portfolio in Portugal combining EUR5.1bn (USD6.9bn).

Under the agreed terms, Commerzbank sold Spanish CRE and the portfolio of non-performing loans in Portugal totalling EUR4.4bn to JPMorgan Chase & Co (NYSE:JPM) and US private equity fund Lone Star.

In Japan, the bank sold CRE portfolio of EUR700m to Asia-focused investment manager PAG.

The transactions reduce by some 16% Commerzbank's CRE portfolio totalling EUR32bn as at the end of March 2014 and the non-performing loans by nearly one third, while substantially improving the CRE risk profile.

Commerzbank anticipates the deals to have a negative impact of around EUR100m on earnings in the second quarter of this year in its non-core assets segment, but overall to have a positive effect on its core capital position with a total positive net capital effect of some EUR200m, it said.

In a comment, Sascha Klaus, divisional board member Non-Core Assets Commercial Real Estate, said these disposals reflect Commerzbank's commitment to its value-preserving run-down strategy.

The financial terms of the deals were not disclosed, but according to a Reuters report citing sources, Commerzbank sold the assets for between EUR3.7bn and EUR3.9bn.

Country: Japan, Portugal, Spain

Sector: Banking/Financial Services

Target: CRE portfolio in Japan, Spanish CRE and the portfolio of non-performing loans in Portugal

Buyer: JPMorgan Chase & Co, PAG, Lone Star

Vendor: Commerzbank AG

Type: Divestment, LBO

Status: Closed

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Publication:M & A Navigator
Geographic Code:9JAPA
Date:Jun 12, 2014
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