Wells Fargo To Buy Commerzbank’s U.K. Property Loans

Wells Fargo To Buy Commerzbank’s U.K. Property Loans
By The original uploader was Henry W. Schmitt at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], <a href="https://commons.wikimedia.org/wiki/File%3AWells_Fargo_Bank.svg">via Wikimedia Commons</a>

Wells Fargo & Co (NYSE:WFC) has entered into an agreement to acquire Commerzbank’s Hypothekenbank Frankfurt U.K. commercial real estate portfolio.

Wells Fargo To Buy Commerzbank's U.K. Property Loans

The leading commercial real estate lender in the U.S, Wells Fargo & Co (NYSE:WFC) has agreed to acquire the former Eurohypo’s U.K. commercial real estate portfolio.  The transaction comprises two pools. One of the pools covers sale of £4.0 billion ($6.95 billion) commercial real estate loan book comprising high-quality institutional assets throughout the U.K. with a special focus in London.

Despite 60% Loss On Shorts, Yarra Square Up 20% In 2020

Yarra Square Investing Greenhaven Road CapitalYarra Square Partners returned 19.5% net in 2020, outperforming its benchmark, the S&P 500, which returned 18.4% throughout the year. According to a copy of the firm's fourth-quarter and full-year letter to investors, which ValueWalk has been able to review, 2020 was a year of two halves for the investment manager. Q1 2021 hedge fund Read More

The second pool relates to sale of £1.3 billion ($1.96 billion) non-performing loans to Lone Star Funds.

The transaction is expected to be concluded during third quarter of 2013.

Wells Fargo, The No. 1 Commercial Real Estate Lender In The U.S.

The fourth-biggest U.S. bank, Wells Fargo & Co (NYSE:WFC), has the number one position in the U.S. commercial real estate lender space.

The transaction with Commerzbank is considered significant in the future growth of Wells Fargo’s platform. The proposed transaction will help Wells Fargo serve its corporate and commercial customers spanning roughly 700 members spread across Europe.

Wells Fargo’s primary European business lines include Global Financial Institutions, Global Banking, Global Transaction Banking, Capital Finance, Commercial Real Estate, Corporate Trust, Asset Management and Securities.

Wells Fargo’s agreement with Commerzbank involves all interest-rate and currency hedging derivatives, as well as the entire operational business of Hypothekenbank Frankfurt in the UK.

Hypothekenbank Frankfurt Has 20-Year History In London

Last summer, Commerzbank renamed U.K staff Eurohypo as Hypothekenbank Frankfurt.

Bill Vernon, executive vice president and group head for Wells Fargo commercial real estate led the acquisition team for Wells Fargo. He said: “Hypothekenbank Frankfurt’s 20-year history in London, their recognition as a market leader in the commercial real estate industry, and our similar approaches to building quality assets and providing outstanding client service all add up to a great strategic expansion opportunity for Wells Fargo’s UK commercial real estate business. This transaction, in combination with Wells Fargo’s long standing real estate expertise, will help create a best-in-class commercial real estate platform in the U.K.”

Wells Fargo & Co (NYSE:WFC) named Hypothekenbank Frankfurt industry veteran, Max Sinclair, as head of its London Commercial Real Estate office.

Several other Hypothekenbank Frankfurt employees are likely to become Wells Fargo & Co (NYSE:WFC) team members, with several of them set to join the London Commercial Real Estate team.

Last week, despite recent interest rate increase discouraging borrowers from refinancing their mortgages in the U.S, the largest home lender in the U.S., Wells Fargo, recorded its 14th-consecutive increase in quarterly profit and ninth-straight record report.

No posts to display