Dresdner Bank's Institutional Restructuring Unit (IRU) sells €350 million portfolio of assets

The Institutional Restructuring Unit (IRU) of Dresdner Bank has sold a portfolio of €350 million of loans. The portfolio included 15 per-forming and non-performing assets from various sectors in the United Kingdom.

Bidders included four banks and seven hedge funds worldwide. The portfolio was acquired by a single bidder in a closed-bid auction. Dresdner Kleinwort Wasserstein acted as financial advisor to the IRU.

"This transaction was our final large portfolio sale in London," says Jan Eric Kvarnström, CEO of the IRU and member of the Dresdner Bank Board of Managing Directors. "Our team there has now reduced the €2 billion UK portfolio down to a few million. Our objectives there have thus been achieved."

Reductions were made via a succession of individual asset sales of the larger assets in 2003, along with a successful programme of restructuring and refinancing of other assets.

When IRU took up its activities to reduce the Bank’s non-strategic asset portfolio in the beginning of 2003, this business unit managed a volume of €36 billion of loan exposures. As of March 2004, IRU had managed to reduce the total portfolio by nearly €20 billion.

Other IRU milestone transactions to date include a major transaction of North American loans of €1.9 billion that went to a number of bidders in November and December 2003, an auction sale of North American and European loans to a single bidder in May 2003 (total of €511 million of assets sold), as well as an auction of €125 million of Asian loans in September 2003 to a number of bidders. The other reductions of the IRU portfolio have been achieved via individual asset sales, loan limit reductions, pre-payments, contractual maturities and amortizations.

Karl-Friedrich Brenner Tel. +49 (0)69 263–83637
Clas Röhl Tel. +49 (0)69 263–52947
Katerina Piro Tel. +49 (0)69 263–81774

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