In one of the largest bank sales of distressed loans since the 2008 financial crisis Credit Suisse is selling a portfolio of distressed commercial real estate loans valued at $2.8 billion to Apollo Management for $1.2 billion according to the Wall Street Journal. Credit Suisse has agreed to provide Apollo with debt financing for the deal, a portfiolio that includes apartment buildings in Germany and hotels in Denmark, Sweden and France. Neither company has yet commented on the deal publicly.
The report said that signs of a stabilising real-estate market and demand for distressed assets from private-equity funds have pushed up prices that buyers are willing to pay. "We're starting to see loans in the marketplace at more realistic prices," said Paul Fuhrman, an executive at private-equity firm Colony Capital, which has been buying distressed-loan portfolios. "We are definitely seeing the banks loosen up."
In the beginning of October, Credit Suisse had said it was confident to meet Swiss Expert Commission's requirements and said it had been preparing for the tightening of regulation for the past two years by reducing its risk-weighted assets and strengthening its capital base according to Stock Markets Review.
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