LBBW completes integration of commercial real estate finance

Germany's biggest state-backed landesbank lender LBBW has finished integrating the commercial real estate finance sector, following its acquisition of Berlin Hyp in 2022.

LBBW

All of LBBW’s commercial real estate financing will now be conducted under the Berlin Hyp brand. The new entity will be an independent part of LBBW.
The combined entity, now operating under the Berlin Hyp brand, disposes of a commercial real estate portfolio of approximately €63 billion, making it one of the largest real estate finance providers in Europe. 
This new structure will allow Berlin Hyp to offer a wider range of services in Germany, other key European markets, and North America. 
By integrating Berlin Hyp, LBBW will streamline management and business processes while also creating synergies to increase earnings and reduce costs. Berlin Hyp will also benefit from LBBW’s expertise and financial strength.
All real estate financing operations will be moved to the new Berlin Hyp, and existing corporate and service functions will be transferred to LBBW. With this change, LBBW will take over all of Berlin Hyp AG’s creditor and debtor relationships and become the new issuer. The two banks' public and mortgage cover registers will be merged, and the technical integration of Berlin Hyp into LBBW’s system is expected to be completed within the next few months.
Sascha Klaus, CEO of Berlin Hyp and member of the LBBW Board of Managing Directors for real estate and project financing, said: “Our customers now have access to an integrated center of expertise for real estate financing – with extensive market knowledge, short communication channels, and integrated solutions. We will continue to foster and extend our close collaboration with the institutions of the Sparkassen-Finanzgruppe.” 
Rainer Neske, CEO of LBBW, added: “Bundling commercial real estate finance in a single powerful entity is a major step in the implementation of our corporate strategy. In doing so, we are significantly increasing our clout in one of our core business areas, strengthening LBBW’s market position as a leading financial institution, and delivering clear benefits for our customers.”