Ashurst has advised Commerzbank, Germany’s second-biggest lender, on the sale by Hypothekenbank Frankfurt A.G. (formerly Eurohypo) of its UK commercial real estate portfolio to a US consortium comprised of certain Wells Fargo & Company entities and certain funds of private equity group Lone Star.
The transaction encompasses the sale of commercial real estate loans and supporting interest rate and currency hedging derivatives totalling in aggregate EUR 5 billion as well as the entire operational business of the London branch of Hypothekenbank Frankfurt A.G.
As a result of the deal, the Lone Star funds will acquire the non-performing assets and Wells Fargo entities the performing loans. The transaction, one of the largest commercial real estate loan portfolio transactions of recent times in Europe, is expected to close in Q3 2013.
The Ashurst team was led by corporate partners Nick Cheshire and Rob Aird with senior associate Mark Edwards in banking providing dedicated loan transfer expertise. Banking partners Martyn Rogers and Lee Doyle assisted with recent new hire, partner Derwin Jenkinson and senior associate Adair Gordon-Orr from capital markets. Partner Stephan Kock, a long standing advisor to Commerzbank in Germany, advised on German law matters.
