FRANKFURT (Reuters) - Deutsche Bank (DE:DBKGn) is preparing to sell a $2 billion (1.24 billion pounds) portfolio of U.S. commercial real estate loans as the North American property markets heat up, a source familiar with the matter said on Tuesday.
Germany's flagship bank is in early stage talks with several buyers including private equity investors as it markets the deal, which is expected to be completed within six weeks, the source said.
The transaction is commercially driven and is expected to be profitable, the source said. It is not related to efforts by Deutsche and other European banks to trim their balance sheets ahead of a health check by the European Central Bank later this month, the source said.
"It's more of a commercial decision to take advantage of market conditions," the source said. "It's not related to capital management."
The sale is being conducted by the so-called special situations group within the bank's commercial real estate division. The group deals with complex or distressed assets.
A spokesman for Deutsche Bank declined to comment.
(Reporting by Thomas Atkins)