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Wells Fargo to acquire $6 billion U.K. commercial real estate portfolio

wellsfargoWells Fargo recently announced its plans to acquire Commerzbank’s Hypothekenbank Frankfurt, formerly known as Eurohypo, $6 billion U.K. commercial real estate portfolio before the end of the third quarter.

“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.,” Bill Vernon, the executive vice president and group head who led the acquisition team for Wells Fargo Commercial Real Estate, said. “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.”

The $6 billion portfolio consists of commercial real estate loans throughout the U.K., particularly in London. Part of the portfolio consists of nearly $2 billion in non-performing assets, which will be acquired by Lone Star Funds and financed by Wells Fargo.

After the acquisition is complete, Wells Fargo will name Max Sinclair as the head of its commercial real estate office. Mike Acratopulo, the managing director and head of origination at Hypothekenbank Frankfurt, as well as a number of other bank employees, are expected to join Wells Fargo.

“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,” Mark Myers, the head of commercial real estate at Wells Fargo, said. “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.”

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