German bank LBBW launches sale of property unit
Regional German bank LBBW said Wednesday it had launched the sale of its real-estate division to conform to demands by the European Commission in exchange for state aid.
LBBW Immobilien is worth around 1.5 billion euros ($2.1 billion), the Financial Times Deutschland reported.
The company owns 21,500 properties, mainly in the prosperous southwestern German state of Baden-Wuerttemberg.
Finalisation of the sale procedure is to take place "by the end of the year, if possible," an LBBW statement said.
The European Commission said LBBW would have to divest its property division by the end of 2012 in exchange for the commission's approval of German state aid during the latest financial crisis.
Conditions for a sale have improved in Germany and the federal government is to launch next year the sale of TLG, a property holding company inherited from the former communist eastern Germany.
TLG has an estimated market value of 1.76 billion euros, the finance ministry said.
© 2011 AFP