Hypo Real Estate Bank has agreed to sell a German real estate financing portfolio worth EUR 4.27 bn to INGDiBa, a German unit of ING Group. The portfolio comprises 53,300 performing loans of approximately 39,000 borrowers. The loans comprise mainly residential financing with a maximum sum of EUR 1 mln each. They are secured by mortgages on around 41,500 properties, and had been extended mainly to private customers by the predecessors of Hypo Real Estate Bank. Financial details of the purchase have not been disclosed.
Hypo Real Estate Bank has agreed to sell a German real estate financing portfolio worth EUR 4.27 bn to INGDiBa, a German unit of ING Group. The portfolio comprises 53,300 performing loans of approximately 39,000 borrowers. The loans comprise mainly residential financing with a maximum sum of EUR 1 mln each. They are secured by mortgages on around 41,500 properties, and had been extended mainly to private customers by the predecessors of Hypo Real Estate Bank. Financial details of the purchase have not been disclosed.
The move is in line with the bank's aim to place around EUR 5 bn from its non-strategic Germany portfolio in the whole of 2007. 'The sale is a further step towards a complete concentration on large-volume commercial business’, Hypo RE said in a statement.
