Reuters: JP Morgan, Lone Star eye Spanish property market with €3.7-3.9B deal

|By:, SA News Editor

JP Morgan (JPM) and private-equity firm Lone Star are in the final stages of acquiring a portfolio of Spanish property loans from Germany's Commerzbank (CRZBF) for €3.7-3.9B (up to $5.4B), Reuters reports.

The assets comprise €1B of non-performing debt and €3.3B of performing loans backed by office blocks and shopping centers.

Should the deal go ahead, JPMorgan and Lone Star would be following other major foreign investors - particularly Blackstone - into a property sector that is apparently starting to recover from a massive bust that occurred during the financial crisis.