Every strike brings me closer to the next home run. –Babe Ruth
By EYK HENNING
Nov. 12, 2014 9:05 a.m. ET
German Bank Seeking to Capitalize on Buoyant U.S. Commercial Real-Estate Market
FRANKFURT— Deutsche Bank AG is close to selling most of a $2 billion portfolio of commercial real-estate loans to U.S. private-equity firm TPG, people familiar with the matter said.
The deal is driven by an upswing in the U.S. commercial real-estate market, which will allow Deutsche Bank to post a profit on the sale, these people said.
The transaction is subject to regulatory approval but could be signed as soon as this month, these people said. Deutsche Bank, Germany’s largest lender, will retain a minority stake in the portfolio.
The assets to be sold include mortgages for shopping malls and office buildings originated by Deutsche Bank and outstanding debt that it bought on the market.
- Banks Brace for Hit on Profitability From Capital Rules (11/10/14)
- Heard on the Street: Banking on Investors to Stop ‘Too Big to Fail’ (11/10/14)
- Deutsche Bank Ordered to Improve Risk Controls (08/07/14)
The sale comes amid Deutsche Bank’s effort to reduce assets on its balance sheet to mitigate effects of increasingly strict banking rules. The German lender aims by the end of next year to shed €250 billion ($313 billion) in assets, weighted by their risk. At the end of September it had already disposed of nearly €200 billion in assets, or roughly 80% of its target.
The U.S. commercial real-estate market has surged recently. Banks issued $28 billion in commercial mortgage-backed securities, or CMBS, in the third quarter, the highest quarterly level since the housing crisis hit in 2007, according to data from Commercial Mortgage Alert. Deutsche Bank is poised to sweep the four major league tables for underwriters and lenders of these securities. The bank said in May it would continue investing in strengthening its U.S. commercial real estate financing business.
Booming demand for commercial real estate securities is increasingly attracting private-equity firms, who are amassing funds from investors looking to bet on rising commercial-property prices around the world. TPG is pushing a step further by snapping up commercial real-estate brokers that link buyers to sellers and landlords to renters.
A venture led by TPG last week completed a $1.05 billion acquisition of Chicago-based DTZ, a real estate services firm with 209 offices in 52 countries and more than $1.9 billion in annual revenue. TPG plans to merge DTZ with Cassidy Turley, a Washington, D.C., firm, which the venture is set to buy before the end of the year, in a deal valued at up to $600 million.
“Cassidy Turley is a leading real estate services business in the U.S. and will complement DTZ’s existing very strong businesses in Asia and Europe as well as DTZ’s existing U.S. businesses,” Ben Gray, Managing Partner Asia at TPG said in September.
The commercial real-estate industry has seen a flurry of acquisitions in recent years, partly in response to globalization. As companies have opened offices throughout the world, they increasingly have preferred real-estate firms that can help them solve their space needs in numerous locations.
Deutsche Bank’s portfolio being sold is held by its special situation group, which is headed by Jonathan Pollack, the bank’s global head of commercial real estate and head of risk for structured finance. Mr. Pollack, a leading figure in commercial real estate financing, previously helped start the bank’s European commercial real-estate business and ran the European commercial mortgage-backed securities trading desk.
A little about me and my expertise – video
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Investment Properties in Phoenix.
View my listings and my profile at:
Please go to my web-site and get all the newsflashes and updates in Commercial Investment Real Estate in Phoenix and Commercial Investment Properties in Phoenix daily
Check out my professional profile and connect with me on LinkedIn.
Follow me on Facebook:
Follow me on Twitter:
Follow Me on Google+
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial Investment Real Estate Broker in Arizona now for 20 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial landspecialist in Phoenix and a Landspecialist in Arizona.
WHETHER YOU LEASE OR OWN
NOW IS THE TIME FOR YOU TO EXPAND, UPGRADE OR INVEST.
we are at on the a rise of the cycle in Commercial Real Estate. so there is only one way and it’s called we are going up and now is the time for you to expand, upgrade or invest in Commercial Properties in Phoenix. The prices on deals I may get you will not be around forever.
If you have any questions about Commercial Investment Properties in Phoenix or Commercial Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion in Commercial Properties in Phoenix or Commercial Properties in Arizona with you.Obviously I am also in this to make money, but it could be a win-win situation for all of us.
Please reply by e-mail firstname.lastname@example.org or call me on my cell 520-975-5207 or Office:480-948-5554
Walter Unger CCIM
Associate Broker, West USA Commercial Real Estate Advisers
7077 E. Marilyn Road, Bldg 4, Suite 130
Scottsdale, AZ 85254
Office : 480-948-5554
View my listings and my profile at:
a little about me and my expertise – video
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
- Investment Real Estate
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.