Wells Fargo to Acquire Hypothekenbank Frankfurt UK Commercial Real Estate Portfolio from Commerzbank

LONDON--(BUSINESS WIRE)--

Wells Fargo & Company 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 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.