The Wall Street Journal, citing unnamed sources, reports that the Wells Fargo-Blackstone Group team will pay between 5% and 10% of the face value of the portfolio, which consists of performing loans and letters of credit.
The Wall Street Journal also reports that Eurohypo sold a commercial property loan with a $180 million face value to U.S. Bancorp. The loan is linked to a portfolio of malls owned by General Growth Properties Inc.
Eurohypo is the mortgage business of Commerzbank, Germany's second-largest lender. Last month, Commerzbank, received regulatory approval from the European Union (EU) to wind down its Eurohypo business as part of its government-financed bailout. Commerzbank was originally instructed by the EU to sell Eurohypo by 2014 as part of the 18 billion euro bailout. However, the lender was unable to find a buyer and has stopped writing new business while selling off its assets.