In Germany, major maneuvers in real estate financing

Posted on Dec. 2021 at 12:34Updated 22 Dec. 2021 at 14:43

The walls are moving in real estate financing in Germany, foreshadowing a long-awaited bank consolidation. First brick: the € 1.7 billion takeover offer from Advent and Centerbridge funds on Aareal, the hotel, office and shopping center financing specialist, which runs until January 19. Second brick: the takeover for a billion of the real estate financing specialist Berlin Hyp by the regional bank of Baden-Württemberg LBBW, announced on Tuesday.

The two operations respond to different logics but mark stages in the very slow process of restructuring the three pillars of the German banking system: that of commercial banks such as Commerzbank and Deutsche Bank on the one hand, that of savings banks (Sparkassen, Landesbanken) partly owned by the German regions on the other hand and finally that of the myriad of cooperative banks (Volksbanken).

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