Commerzbank sells $3.2bn of real estate loans

Commerzbank sold $3.2bn of commercial real estate loans to Oaktree Capital and JPMorgan, making headway with its plan to reduce riskier assets.

Bloomberg News reports that the bank ceded $752.6m of distressed German debt to Oaktree, a U.S.-based alternative investment firm, the lender said in a statement Wednesday.

It also sold $2.37bn of mixed non-performing and performing loans backed by European assets to a group controlled by JPMorgan and Lone Star Funds. It sold the assets at a 3% discount, it said.

'The market believes that Commerzbank is on the right track to reducing non-core assets', said Philipp Haessler, an analyst at Equinet Bank in Frankfurt with a neutral rating on Commerzbank stock. 'When they had their first big non-core asset real estate sales a couple years ago, shares responded positively'.

To access the complete Bloomberg News article hit the link below:

Oaktree, JPMorgan Buy $3.2 Billion of Loans From Commerzbank

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