(Bloomberg) -- Deutsche Bank AG has completed the disposal of close to $1 billion in loans linked to US commercial real estate, reducing its exposure to an asset class that had weighed on the business.
A spokesman for Deutsche Bank confirmed that sale had taken place, without giving details. Bloomberg reported in August that the lender was trying to divest the portfolio.
Deutsche Bank is a big lender to developers of US commercial real estate and especially offices, a market that has been hard hit by higher borrowing costs and a trend toward remote working. Chief Financial Officer James von Moltke said last month that the lender had made a provision of €23 million in anticipation of the portfolio sale.
The transaction, which hadn’t concluded at the time, provides “further evidence of our view that commercial real estate has at least found a floor and is stabilizing,” von Moltke said at the time.
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