Zhitong Finance learned that Blackstone Group (BX.US) has acquired a mortgage portfolio worth 1 billion US dollars from German real estate loan bank Deutsche Pfandbriefbank AG (PBB). The German real estate bank is struggling to cope with the impact of fluctuations in the commercial real estate market. Blackstone said in a statement Tuesday that the portfolio includes 11 loans secured by multi-family homes, offices and hotel assets in the US and the UK. Kuroishi said its real estate debt strategy department will buy these assets in an all-cash manner, but did not disclose the amount it paid for these loans.

The sale is part of PBB's broader strategy to manage its balance sheet by divesting assets. The bank is one of the most prominent examples of European banks being hit due to concerns that the US commercial real estate market is spreading to Europe. In addition to this, other institutions in the real estate crisis are also seeking to divest their debts and find buyers.

On May 13, due to huge losses in the US property market, Blue Sky Bank was rescued, and Daiwa Securities invested 330 million US dollars. Daiwa Securities Group will take a stake in Aozora Bank, which will enable Aozora Bank to obtain new capital after losing money due to the turmoil in the US real estate market. Daiwa Securities said in a document that Daiwa Securities will purchase newly issued shares worth approximately 51.4 billion yen (US$330 million) from Aozora Securities and obtain about 15.6% of voting rights. According to compiled data, this would make Daiwa Securities the bank's largest shareholder. Daiwa Securities and Aozora Bank plan to cooperate in four areas: wealth management, real estate, mergers and acquisitions, and startup investment.

Meanwhile, on May 15, New York Community Bank (NYCB.US) also agreed to sell about $5 billion in secured storage loans to JPMorgan Chase Bank (JPMorgan Chase Bank), a subsidiary of JPMorgan Chase Bank (JPM.US). Closing this transaction is subject to due diligence and customary closing conditions. The sale is expected to close in the third quarter of 2024.

The deal is expected to increase New York Community Bank's CET1 capital ratio (converted to preferred shares) by 65 basis points, bringing the CET1 capital ratio to 10.8%. The deal will also enhance its liquidity position as proceeds from the sale will be reinvested in cash and securities. According to estimates, the share of cash and securities in total assets is expected to rise to 24% from 20% on March 31. The bank's estimated loan-to-deposit ratio is expected to fall to 104% from 110% at the end of the first quarter of 2024.

Additionally, on Monday, the troubled Swedish state-owned real estate company SBB reached a second financing agreement with investment firm CastleLake LP. SBB is trying to avoid the shortage of capital facing the Swedish commercial real estate industry. Last weekend, SBB said it would receive a cash injection of SEK 5.7 billion (US$535 million). The company and Castlelake formed a joint venture to transfer properties off their books in exchange for cash. Prior to reaching an agreement with the US company, Morgan Stanley and Canada's Brookfield Asset Management (Brookfield) had previously made similar deals with SBB.