GE Capital buys $2.3 bln loan portfolio from Deutsche Postbank

Reuters

LONDON, Nov 20 (Reuters) - General Electric's financearm has bought a 1.4 billion pound ($2.3 billion) portfolio ofmainly British commercial real estate loans from DeutschePostbank as it seeks to expands its refinancing andnew loans business.

GE Capital Real Estate said the portfolio is composed ofperforming commercial property loans, with many soon up forrenegotiation.

More than 90 percent of the loans are in Britain and securedagainst offices, shops and hotels, some of which are in centralLondon, a spokeswoman for GE Capital Real Estate said. Theremaining properties are in Germany and France.

"This transaction supports GE's plans to grow our corecommercial real estate lending business globally," said MarkBegor, chief executive of GE Capital Real Estate.

"It also demonstrates GE's ability to underwrite portfoliodeals and positions us as a lead provider in the market for thelong term."

GE Capital Real Estate manages $40 billion in global assets.It expects to close the Deutsche Postbank transaction before theend of the year.

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