Deutsche Bank has confirmed it has sold part of its European property portfolio to US private equity firm Blackstone for a total consideration of €1.04 billion.
Under the deal, Blackstone will acquire 51 bank branches and office buildings in nine countries. The majority of sites are in Germany with the remainder in Austria, Belgium, Italy, Luxembourg, the Netherlands, Portugal, Spain and Switzerland.
Many of the buildings will be leased back to the bank on a medium- to long-term basis. The transaction is expected to close by the end of this year.
The sell off is part of Deutsche Bank's plans to free up capital from non-core activities. However, according to a report by Reuters, the bank has made a book loss of €100 million from the sale.
In February 2003 the bank sold two properties in London - namely its Appold Street biluding and its 55% interest in Winchester House - for £230 million.