WestImmo increases property loan syndication to savings banks

German property lender Westdeutsche ImmobilienBank (WestImmo) has announced that it has syndicated commercial real estate loans with a total volume of some EUR 130 mln to savings banks from six German regions. This compares to EUR 90 mln for the whole of 2008.

WestImmo said the financed properties mainly comprise retail and office real estate in major German cities and conurbations with a market value totalling about EUR 550 mln and a financing volume of EUR 275 mln.

The individual financing deals were arranged by Westimmo. The bank said it will continue to be the largest single lender in deals and will manage them as syndicate leader. Westimmo said savings banks which take part diversify their loan books and generate additional income by participating in the low-risk real estate financing offered by WestImmo.

'We are delighted that savings banks from all over Germany are showing this confidence in us and participating in our financing deals', said Peter Knopp, chairman of WestImmo's managing board.

Westimmo added that it also participates reciprocally in real estate financing organised by the savings banks where the size of the package or risk aspects mean that these institutions cannot deliver them on their own.

In 2008, WestImmo pulled in EUR 210 mln of new business through this joint lending with savings banks, some 13% more than in 2007.