GE piles into more debt

GE Real Estate has acquired a €1.3 billion package of commercial loans less than 6 months after acquiring an even larger UK loan book.

GE Real Estate has bought a portfolio of performing senior and whole loans from Capmark Europe.

The portfolio comprises 39 loans agreed with a number of commercial real estate borrowers backed by assets in Europe, the majority of which are in Germany.

The €1.3 billion ($2.1 billion) deal follows an even larger one in November when the US firm agreed to buy £2 billion of performing loans from Bradford and Bingley building society in the UK.

Mike Rowan, head of UK for GE, said the firm had capitalized on its AAA-rated corporate balance sheet to acquire during a period of market uncertainty.

GE, which is reportedly making a move into private equity real estate by launching a succession of funds, first started in real estate by investing in debt.