(Reuters) – Deutsche Bank has agreed to sell a $2 billion portfolio of U.S. commercial real estate loans to U.S. private equity firm TPG Capital Management LP, a source familiar with the matter said on Wednesday.
The transaction is commercially driven and is expected to be profitable, the source said. It is not related to efforts by Deutsche and other European banks to trim their balance sheets to strengthen their regulatory capital ratios, the source said.
“This is part of normal operating business,” the source said. “The timing in the U.S. is favorable to sell down U.S. real estate positions that you’ve built up.”
An announcement on the deal is expected soon, he said.
The sale is being conducted by the so-called special situations group within Deutsche Bank’s commercial real estate division. The group deals with complex or distressed assets.
TPG and Deutsche Bank declined to comment.