SAN FRANCISCO—Union Bank N.A. has agreed to acquire about a $3.7 billion portfolio of U.S. commercial real estate loans from PB Capital Corp.'s institutional commercial real estate lending portfolio and platform. PB Capital is a wholly owned subsidiary of Deutsche Bank AG.
The New York-headquartered commercial real estate lending division of PB Capital has around $3.7 billion in loans outstanding on properties in major metropolitan areas across the U.S. The acquisition is expected to be completed in the second quarter of 2013.
Union Bank, a full-service commercial bank, is a primary subsidiary of San Francisco-based UnionBanCal Corp. UnionBanCal is a wholly-owned subsidiary of the Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc.
Union Bank noted that the acquisition will expand its commercial real estate presence in the U.S., and will enable to bring high-quality commercial real estate loan origination and servicing platform. It will also help to establish geographic and asset class diversification, as well as a desirable real estate customer base, it added.
"This is an important strategic acquisition for Union Bank, as it leverages our established CRE capabilities by adding a national origination platform and strong relationships with top-tier property owners," Union Bank President and CEO Masashi Oka said in a statement.
Oka said that the deal will also enable Bank of Tokyo-Mitsubishi UFJ or BTMU to efficiently leverage its strength in the Americas and deploy capital into high-quality assets. Oka is also CEO for the Americas for BTMU.
According to Michael Stedman, senior executive vice president and head of Union Bank's Real Estate Industries, the transaction will lead to additional business opportunities for Union Bank and BTMU in the U.S.