Hypo unit originates new business

Deutsche Pfandbriefbank, the business formed in June out of a merger between Hypo Real Estate Bank and subsidiary Depfa Deutsche Pfandbriefbank, has provided €40 million to UBS Wealth Management to refinance an office in Munich.

Deutsche Pfandbriefbank, a newly-created part of nationalised German lender Hypo Real Estate, is originating new business.

In a statement, the bank said it had provided a €40 million refinance facility to UBS Wealth Management, Global Property Fund.

UBS is using the facility to refinance a fully-let office block in Munich, which it acquired in October 2008.

Harin Thaker, head of real estate business international at Deutsche Pfandbriefbank, said in the statement the transaction was important because the bank was “originating as planned new business”.

Deutsche Pfandbriefbank was formed in June as a result of the merger between Hypo Real Estate Bank and Depfa Deutsche Pfandbreifbank – the two bank subsidiaries licensed to issue German covered bonds.