The savings banks are considering selling the real estate financier – but only within their own group.
(Photo: Bloomberg)
Frankfurt The bidding process for real estate financier Berlin Hyp is entering the decisive phase. The Landesbanken Helaba and LBBW as well as the Sparkasse fund provider Deka have submitted offers for Berlin Hyp, as several people familiar with the topic told the Handelsblatt. They assume that the purchase price will amount to around one billion euros in the end.
A Helaba spokesman said that a purchase of Berlin Hyp would be “a very interesting option for Helaba, both economically and strategically, and a further step towards consolidation within the Sparkassen-Finanzgruppe”.
Deka and LBBW did not comment. LBBW boss Rainer Neske had already officially expressed interest in Berlin Hyp last Wednesday. “We think this is an interesting business,” he said. Interested parties had to submit binding offers by the end of last week.
Berlin Hyp is owned by the savings banks and is currently part of Landesbank Berlin Holding together with Berliner Sparkasse. The savings banks want to dissolve this holding company, among other things because of the demand of the financial supervisory authority for a more stringent management of the group companies.
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While the Berliner Sparkasse is to be kept as an independent institute, the Sparkassen have started a sales process for Berlin Hyp. However, only bidders from the public financial sector are allowed to participate, as Sparkasse President Helmut Schleweis made clear in an interview with Handelsblatt at the beginning of September.
“Berlin Hyp is a jewel in our group because it is very powerful and efficient,” said Schleweis. The institute not only acts as a financier of commercial real estate, but also conducts real estate transactions with the savings banks and offers services in this area. “It is also excellently positioned when it comes to sustainability,” said Schleweis.
Berlin Hyp has total assets of 35 billion euros and generated an operating result after risk provisioning of 139 million euros in the first half of the year. The return on equity was 19.5 percent.
The bidders Helaba, Deka and LBBW are all also active in the real estate business themselves. It has long been known that they are interested in Berlin Hyp. The Bloomberg news agency first reported on Helaba’s bid on Monday.
More: Sparkasse President Schleweis: “Inflation is destroying assets every day.”