GE Capital buys $2.3 billion loan portfolio from Deutsche Postbank
LONDON (Reuters) - General Electric's finance arm has bought a 1.4 billion pound portfolio of mainly British commercial real estate loans from Deutsche Postbank as it seeks to expands its refinancing and new loans business.
GE Capital Real Estate said the portfolio is composed of performing commercial property loans, with many soon up for renegotiation.
More than 90 percent of the loans are in Britain and secured against offices, shops and hotels, some of which are in central London, a spokeswoman for GE Capital Real Estate said. The remaining properties are in Germany and France.
"This transaction supports GE's plans to grow our core commercial real estate lending business globally," said Mark Begor, chief executive of GE Capital Real Estate.
"It also demonstrates GE's ability to underwrite portfolio deals and positions us as a lead provider in the market for the long term."
GE Capital Real Estate manages $40 billion in global assets. It expects to close the Deutsche Postbank transaction before the end of the year.
(Reporting by Brenda Goh; Editing by David Goodman)
