JPMorgan acquires Citibank portfolio of real estate loans for $3.5bn

12 August 2010

JPMorgan has acquired a portfolio of loans surrounding property for $3.5 billion from Citibank.

According to the financial services provider, the portfolio features 3,800 loans for a mixture of commercial and residential properties in the US.

The loans are for accommodation in the New York, California and Illinois regions and are performing loans for properties which demonstrated a strong credit record.

Al Brooks, head of Commercial Term Lending, said: “This highly desirable loan portfolio adds strong earning assets in markets we currently serve and valuable relationships that will provide new origination opportunities.

“The portfolio mirrors Chase Commercial Term Lending's focus on excellent borrowers in stable markets.”

The sale of the portfolio is expected to reduce Citi Holdings’ assets by $3.5 billion and comes as part of the firm’s strategy to divest the business of any assets deemed to be non-core.

By the close of the second quarter, assets belonging to Citi Holdings were less than a quarter of the total balance sheet for the organisation.

By Jim Ottewill

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