German bad bank ramps up efforts to sell WestImmo

German bad bank Erste Abwicklungsanstalt (EAA) has confirmed that it has launched a new sales process for property lender Westimmo in an operation run by JP Morgan.

According to a spokesperson for EAA, potential buyers have been invited to submit an expression of interest by the May 30 deadline.

In a recent statement, EAA said that 'the sale of the bank to an investor with a long-term outlook has top priority for the company'. 'The very good results achieved in the 2013 financial year are an important basis for the concrete discussions that are currently being held with several interested parties,' it added.

WestImmo, with a real estate loan portfolio of around €7 bn, posted an after-tax profit of €50 mln in 2013.

WestImmo was transferred to bad bank EAA in June 2012 after stricken parent group WestLB failed to reach a sales agreement with private equity group Apollo.

WestLB was required to sell the property arm in return for bailout funds of €3 bn received in 2008.