Wells Fargo to Acquire Hypothekenbank Frankfurt UK Commercial Real Estate Portfolio from Commerzbank
Wells Fargo & Company (NYSE: WFC), the leading commercial real estate
lender in the U.S., has signed an agreement to acquire Commerzbank’s
Hypothekenbank Frankfurt (formerly Eurohypo) U.K. commercial real estate
portfolio. The transaction includes a £4.0 billion ($6.05 billion)
portfolio of commercial real estate loans comprised of high-quality
institutional assets throughout the U.K. with a focus in London. A
portion of the portfolio, consisting of approximately £1.3 billion
($1.96 billion) of non-performing assets, will be acquired by Lone Star
Funds, with Wells Fargo providing the financing. The transaction is
expected to close in Q3 2013.
“This transaction, in combination with Wells Fargo’s long standing real
estate expertise, will help create a best-in-class commercial real
estate platform in the U.K.,” said Bill Vernon, executive vice president
and group head who led the acquisition team for Wells Fargo Commercial
Real Estate. “Hypothekenbank Frankfurt’s 20-year history in London,
their recognition as a market leader in the commercial real estate
industry, and our similar approaches to building quality assets and
providing outstanding client service all add up to a great strategic
expansion opportunity for Wells Fargo’s U.K. Commercial Real Estate
business.”
Upon completion of the transaction, Wells Fargo will name Hypothekenbank
Frankfurt industry veteran, Max Sinclair, as head of its London
Commercial Real Estate office. In addition, Mike Acratopulo,
Hypothekenbank Frankfurt’s managing director and head of origination,
and a number of other Hypothekenbank Frankfurt employees are expected to
become Wells Fargo team members, with most of those joining the London
Commercial Real Estate team. Upon joining Wells Fargo, Sinclair will
report to Chip Fedalen, executive vice president and group head who
currently oversees Wells Fargo’s U.K. Commercial Real Estate operation
and reports to Mark Myers, head of Commercial Real Estate at Wells
Fargo. As part of the transaction, the Hypothekenbank Frankfurt office
space at 90 Long Acre will become Wells Fargo’s new U.K. Commercial Real
Estate headquarters.
“Given Wells Fargo’s position as the number one commercial real estate
lender in the U.S. and our recent expansion of commercial real estate
services in the U.K., this transaction is a significant investment in
the future growth of our U.K. platform,” said Myers. “Max’s deep
industry expertise and knowledge of the U.K. market will add significant
strength to our Commercial Real Estate platform and we look forward to
having him and the other outstanding Hypothekenbank Frankfurt team
members join our Wells Fargo team in London.”
Serving both our corporate and commercial customers with approximately
700 team members throughout Europe, Wells Fargo’s primary European
business lines include Global Financial Institutions, Global Banking,
Global Transaction Banking, Capital Finance, Commercial Real Estate,
Corporate Trust, Asset Management and Securities.
About Wells Fargo Commercial Real Estate
Wells Fargo’s Commercial Real Estate group provides commercial real
estate banking, capital markets, and advisory services in an integrated
platform that includes lending, syndications, debt placement, equity
raising and underwriting, mergers and acquisitions and servicing. For
more information about Wells Fargo’s Commercial Real Estate platform
visit: www.wellsfargo.com/realestate.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified,
community-based financial services company with $1.4 trillion in assets.
Founded in 1852 and headquartered in San Francisco, Wells Fargo provides
banking, insurance, investments, mortgage, and consumer and commercial
finance through more than 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com),
and has offices in more than 35 countries to support the bank’s
customers who conduct business in the global economy. With more than
270,000 team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 25 on
Fortune’s 2013 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy all our customers’ financial needs and help
them succeed financially.
Copyright Business Wire 2013