Oaktree €700 million acquisition of Commerzbank commercial real estate loan portfolio

Overview:

• US private equity firm Oaktree has acquired a €700 million portfolio of non-performing commercial real estate (CRE) loans from Commerzbank subsidiary Hypothekenbank Frankfurt. 
• The German lender is divesting of its riskier assets in compliance with the terms of its €18.2 billion state bail-out in 2009.
• The loans, which are predominately secured against German property assets, were sold at a discount of roughly 3%.
• Earlier in 2015, Germany's second biggest lender also sold a larger CRE portfolio worth €2.2 billion to Lone Star and JPMorgan. 
• Combined, the two deals reduced the amount of non-performing CRE loans the bank holds by €1.3 billion. 

Ben Naylor - Regional editor