Wells to Buy United Kingdom Commercial Property Portfolio

By Bonnie Sinnock

Published July 15, 2013, 4:26 p.m. EDT

1 Min Read

Wells Fargo & Co.’s U.S. commercial real estate lending business has agreed to buy a British pound-denominated $6.05 billion United Kingdom CRE portfolio from Commerzbank’s Hypothekenbank Frankfurt (formerly Eurohypo) at an undisclosed purchase price as it makes inroads into this market.

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The portfolio contains commercial real estate loans backed by properties that Wells described in a press release as high-quality institutional assets with a concentration in the London area. A portion of the portfolio consists of about $1.96 billion of nonperforming assets. Lone Star Funds is slated to acquire this, with Wells providing the financing.

Upon the completion of the transaction Max Sinclair will become head of Wells’ London commercial real estate office. Also, Mike Acratopulo, Hypothekenbank Frankfurt’s managing director and head of origination—as well as other staff from Hypothtekenbank Frankfurt—are expected to join Wells.

Hypothekenbank Frankfurt office space is slated to be used as Wells’ new U.K. CRE headquarters.

Wells expects the deal to close in the third quarter.

Capital Markets Editor

Bonnie Sinnock is National Mortgage News' Capital Markets Editor at Arizent and has worked for NMN and affiliated publications since 1995. Her... Read full bio

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