A decade since the last peak and crash, the real estate banking sector is better positioned for the inevitable correction, writes Simon Marshall, head of UK commercial property finance at Landesbank Baden-Württemberg (LBBW).
Texas-based private equity firm TPG continued its rapid expansion into real estate last month by acquiring 75% of a $2.5bn portfolio of US real estate loans from Deutsche Bank’s Special Situations Group. The deal involves higher-yielding debt on transitional assets, along with an 11-strong DB origination and risk management team.
The firm struck the deal through a new REIT called TPG Real Estate Finance Trust (TRT) and said it had raised $750m from institutional investors to originate new loans. DB retains a 25% interest.