Wells Fargo buying UK real estate portfolio

Associated Press

NEW YORK (AP) -- Wells Fargo & Co. is buying Commerzbank's U.K. commercial real estate portfolio as it looks to expand in the region.

Financial terms were not disclosed.

Wells Fargo's commercial real estate arm will be acquiring a $6.05 billion portfolio of commercial real estate loans, with an emphasis on London. Part of the portfolio that includes $1.96 billion of non-performing assets — or loans that are considered past due and in danger of default — will be purchased by Lone Star Funds, with Wells Fargo providing the financing.

The deal is expected to close in the third quarter.

Wells Fargo, the biggest U.S. mortgage lender in the U.S., on Friday reported that its second-quarter profit rose 20 percent. The performance was helped by lower expenses and fewer bad loans.

Shares of the San Francisco company added 65 cents to $43.28 in Monday afternoon trading.