Leading international law firm Dechert LLP advised Wells Fargo in relation to the sale of £4 billion of loans and the London operations of Hypothekenbank Frankfurt (formerly Eurohypo) by Germany’s Commerzbank AG.
The Hypothekenbank portfolio includes £2.7 billion in high quality institutional assets across the UK, with a focus on London, as well as £1.3 billion of nonperforming assets.
Wells Fargo purchased the performing two thirds of the portfolio, and private equity firm Lone Star Funds acquired the nonperforming third. Lone Star’s acquisition was financed with a loan from Wells Fargo.
The acquisition follows San Francisco-based Wells Fargo’s announcement in January 2013 that it was to expand its UK commercial real estate business.
The Dechert team advising Wells Fargo on both the acquisition and the loan to Lone Star was led by relationship partner Richard Jones and London finance partner Jeremy Trinder. London partner Mark Stapleton provided tax advice, and London partner Charles Wynn-Roberts advised on employment law matters. Senior associate David Gervais advised on real estate matters.
