Rabobank's property financing arm FGH Bank said on Tuesday that it has agreed to sell a loan portfolio with an outstanding balance of €1.3 bn.
Dutch property financier RNHB is buying the loans for an undisclosed amount.
Closing of the transaction is expected to take place in the second quarter of 2018.
Rabobank said the deal is in line with its strategy to phase out FGH's activities over the course of 2018 after having transferred core loans to Rabobank in 2017.
The acquisition is in line with RNHB's strategy to expand its business through organic growth and selective portfolio acquisitions.
RNHB was founded in 2008 through a merger between Rijnlandse Hypotheekbank and Nederlandse Hypotheekbank. At the time the commercial real estate lender was a unit of FGH. In 2016 the company, together with a €1.7 bn loan portfolio and 60 employees, were sold to a consortium of CarVal Investors and Vesting Finance, part of Arrow Global Group.
The transaction follows the sale by Rabobank's Bouwfonds investment management arm of a large part of its portfolio as part of Rabo's strategy to reduce its fund and asset management business.
