TPG Buys 75% of Real-Estate Loan Portfolio From Deutsche Bank

By Josh Beckerman 

The real-estate platform of private-equity firm TPG has acquired a 75% stake in a $2.5 billion loan portfolio from Deutsche Bank AG's special situations group.

Deutsche Bank is retaining a 25% interest in the portfolio, which consists of 57 loans for U.S. properties, including apartments, offices, condominiums, hotels and industrial assets, primarily in the New York and Los Angeles markets.

TPG has formed a new real-estate investment trust, TPG Real Estate Finance Trust. Eleven origination and risk-management professionals from the special situations group have joined the REIT.

The Wall Street Journal reported in November that Deutsche Bank was close to selling most of a $2 billion portfolio of commercial real-estate loans to TPG. The deal was driven by an upswing in the U.S. commercial real-estate market, which would allow Deutsche Bank to post a profit on the sale, according to the report.

TPG's real-estate efforts have included the 2014 purchases of real-estate services providers Cassidy Turley and DTZ by a consortium that also includes PAG Asia Capital and Ontario Teachers' Pension Plan.

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