IFLR1000

JPMorgan and Lone Star €2.2 billion acquisition of Commerzbank commercial real estate loan portfolio

1/7/2015
Select tab

€ 2.2 billion

$ 2.432 billion

Completed

1/7/2015

Overview:

  • JP Morgan and Lone Star bought a €2.2 billion European commercial real estate (CRE) loan portfolio from Commerzbank subsidiary Hypothekenbank Frankfurt as the German lender sought to reduce the group's exposure to more riskier assets in compliance with the terms set out in its 2009 state bail-out.  
  • The portfolio was a mix non-performing and performing loans related to assets in Austria, Belgium, Czech Republic, Cyprus, Denmark, Finland, Hungary, Luxembourg, Netherlands, Rumania, Sweden, Switzerland, Slovakia and Turkey. 
  • The portfolio was bought at 3% discount. 
  • Commerzbank also sold a German CRE portfolio - worth €700 million - to Oaktree Capital.
  • In conjunction, the two transactions reduced the amount non-performing CRE loans held by the lender by $1.3 billion.

Ben Naylor - Regional editor

Jurisdictions:

Cyprus
Denmark
Finland
Germany
Sweden
Switzerland
Austria

Deal type:

Loan portfolio sale

Practice areas:

Banking
M&A

Industry sectors:

Banking
Real estate

Firms:
Allen & Overy

Party: Commerzbank AG (Seller)

Party: Hypothekenbank Frankfurt (Seller)

Lawyers: Jens Nollmann, Jochen Scheel, Peter Hoegen, Stefan Henkelmann

Binder Grösswang

Party: Commerzbank AG (Seller)

Party: Hypothekenbank Frankfurt (Seller)

Lawyer: Stefan Tiefenthaler

Cederquist

Party: Commerzbank AG (Seller)

Party: Hypothekenbank Frankfurt (Seller)

Lawyer: Svante Hultqvist

DLA Piper

Party: Lone Star Funds (Acquirer)

Lawyer: Dietmar Schulz

Freshfields Bruckhaus Deringer

Party: JPMorgan Chase (Acquirer)

Lawyer: Michael Josenhans

Harneys - Aristodemou Loizides Yiolitis

Party: Hypothekenbank Frankfurt (Seller)

Party: Commerzbank AG (Seller)

Lawyers: Nancy Erotocritou, Pavlos Aristodemou

Krogerus

Party: Hypothekenbank Frankfurt (Seller)

Party: Commerzbank AG (Seller)

Lawyer: Päivi Toivari

Kromann Reumert

Party: Hypothekenbank Frankfurt (Seller)

Party: Commerzbank AG (Seller)

Lawyer: Søren Andreasen

Niederer Kraft Frey

Party: Hypothekenbank Frankfurt (Seller)

Party: Commerzbank AG (Seller)

Lawyer: Andreas F Vögeli

Related deals