German bank Eurohypo said on Monday its board has given the green light to the acquisition of Hypothekenbank in Essen (Essen Hyp) from its parent company, Commerzbank, for an undisclosed amount. The bank said the decision represents 'a decisive step towards the merger of Essen Hyp and Eurohypo.' Commerzbank announced in November last year that it planned to merge newly-acquired Essen Hyp with its Eurohypo unit as it sought to strengthen its public finance business. The merger process is expected to be completed by the end of August 2008, with retroactive effect to 1 January 2008.
German bank Eurohypo said on Monday its board has given the green light to the acquisition of Hypothekenbank in Essen (Essen Hyp) from its parent company, Commerzbank, for an undisclosed amount. The bank said the decision represents 'a decisive step towards the merger of Essen Hyp and Eurohypo.' Commerzbank announced in November last year that it planned to merge newly-acquired Essen Hyp with its Eurohypo unit as it sought to strengthen its public finance business. The merger process is expected to be completed by the end of August 2008, with retroactive effect to 1 January 2008.
The bank also said it has financed the acquisition of more than 1,000 Deutsche Post properties by Lone Star Real Estate Fund in a club deal with Natixis, DekaBank and Société Générale. The buildings are predominantly leased back to Deutsche Post on a long-term basis and are located across Germany. Eurohypo functions as the facility and security agent.
'The transaction proves that even under the noticeable impact of the subprime crisis large-sized deals can be successfully realized as club deals,' said Benedikt Kiesl, head of the department European Structured Finance Germany of Eurohypo.
