Postbank expands international real estate finance

Deutsche Postbank AG is seeking to further expand its business in providing finance for commercial real estate, and to boost its growth on international markets in particular. This was highlighted by Stefan Jütte, Board member with responsibility for Credit at the Bonn-based bank, at the “Expo Real” international real estate trade fair in Munich. “We have dual access to the markets outside Germany: firstly, we follow our corporate customers in their business abroad, providing them with support in real estate acquisitions. Thus, we are gradually accessing markets in Eastern Europe and sounding out new business opportunities, for example in Turkey. Secondly, in our London branch and our PB Capital subsidiary in New York, we have successful bases in the key real estate markets of the United Kingdom and North America.”

Even today, one of the focal points of Postbank’s real estate activities is Western Europe (ex Germany). At the end of 2005, Postbank’s portfolio of real estate loans had a volume of EUR 1.9 billion, an increase of eleven percent as against the previous year. In new business, Postbank reported growth in Western Europe of as high as 75 percent in 2005. In addition, there it’s the business of the London branch, which was acquired as at the beginning of 2005. Thus, it increased its credit portfolio by around 30 percent year-on-year to EUR 1.3 billion as at year-end.

North America, where Postbank manages its real estate clients through PB Capital in New York, it extended its total credit portfolio including commitments to USD 3.5 billion as at the end of 2005. At the end of 2004, there figure was EUR 2.9 billion.

“We wish to see our commercial real estate finance activities continue to grow in 2006 as well,” said Jütte. “We are sticking to our cautious risk strategy, which allows us to generate highly controlled growth.”