Aareal Bank sells EUR 1.5b loan portfolio to Postbank

German bank Aareal has sold a EUR 1.5bn portfolio of private construction financing to Deutsche Postbank. The parties agreed not to disclose the purchase price but Aareal said the transaction will not have any impact on its annual result. The deal is subject to approval by antitrust authorities as well as by Aareal shareholders at the annual general meeting scheduled for 21 May 2008. The sale is expected to be completed by the third quarter of 2008.

Postbank is acquiring a portfolio of 28,000 performing private loans. The portfolio comprises financing loans with a total volume of EUR 1.04bn from Aareal Bank and EUR 430mln property credits of DEPFA Deutsche Pfandbriefbank, for which Aareal Bank has been responsible since 1999. Aareal said the sale of this loan portfolio is fully in line with its strategy to focus on its core business. Since 2002, Aareal Bank has concentrated on commercial property financing projects and has no longer been active in private client operations. With this transaction the bank is selling around 84% of its private construction loans.

'With Postbank, we have been able to win over one of the largest retail banks in Germany for this transaction, whose focus, amongst others, lies on private construction financing. We are convinced, therefore, that our clients will receive sustained and comprehensive service under the umbrella of the Postbank Group. With regard to the legal structure of this transaction, both companies have attached special importance to the fact that their clients' rights will be fully preserved,' said Hermann Merkens, board member responsible for this transaction.