A US unit of Mitsubishi UFJ Financial Group (MUFG) said Monday it has reached an agreement to buy a real-estate lending business run by PB Capital Corporation, a Deutsche Bank Group company.
Union Bank announced the deal in a statement, saying “the acquisition expands Union Bank’s commercial real estate presence” in the United States, which is “about $3.7 billion in loans outstanding on properties in major metropolitan areas across” the country.
“The acquisition is subject to customary closing conditions, and is expected to be completed in the second quarter of 2013,” it said.
A spokesman for MUFG in Tokyo said the financial group would not disclose the figure for the transaction, but an earlier report by the Nikkei business daily said it would cost the Japanese bank more than 300 billion yen ($3 billion).
“The transaction also enables the Bank of Tokyo-Mitsubishi UFJ (BTMU) to efficiently leverage its strength in the Americas and deploy capital into high-quality assets,” said Union Bank President Masashi Oka, who is also CEO for the Americas for BTMU, a mainstay banking business of MUFG.
Japan's Mitsubishi UFJ to buy US loan business
